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InvestHub.com's
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.
 

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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