It represents sportsmanship and respect. Normally you see it after World Cup and it is a souvenir. It's up to the players to trade jerseys or not. It's normally done at the end to congratulate players for their efforts.
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The first time that footballers switched shirts was in 1931, as a keepsake for the winners. This became a tradition over the years as a sign of friendship and social respect.
At professional level, many players exchange shirts as a mark of respect for the other player and to show their admiration for the other's skill.