A cross-currency agreement whereby one party lends funds in a given currency to the other party, which is usually situated in a different country, in exchange for a loan, for the same amount and maturity in another currency, from that party. Back-to-back loans are mainly used to minimise foreign exchange exposure, particularly when foreign exchange regulations prevent the use of a swap agreement. Back-to-back loans have now been largely replaced by long-term cross currency swaps.