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Finance Dictionary and Glossary of Investment Terms
Back-to-Back Loan
Definition 1.
A loan in which two companies in different countries borrow offsetting amounts from each other in each other's currency. The purpose of this transaction is to hedge against currency fluctuations.
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Definition 2.
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.
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