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Home > QFINANCE Dictionary > Definition of back-to-back loan

Definition of

back-to-back loan

Finance

arrangement for two matching loans in different currencies an arrangement in which two companies in different countries borrow offsetting amounts in each other's currency and each repays their loan at a specific future date in its domestic currency. Such a loan, often between a company and its foreign subsidiary, eliminates the risk of loss from fluctuations in exchange rates.

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Definitions of ’back-to-back loan’ and meaning of ’back-to-back loan’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’back-to-back loan’ and other financial terms with our online QFINANCE Financial Dictionary.

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