Back-to-back loan

Back-to-back loan
A loan in which two companies in separate countries borrow each other's currency for a specific time period and repay the other's currency at an agreed upon maturity. The New York Times Financial Glossary

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back-to-back loan UK US noun [C]
FINANCE an arrangement in which two companies in different countries lend each other equal amounts of money in their own currency and pay it back in their own currency in order to avoid loss if, for example, the relationship between the values of the two currencies changes

Financial and business terms. 2012.

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