A form of medium-to long-term financing by which a UK company, for example, may borrow foreign currency and at the same time purchase UK government bonds of equal value and maturity, or deposit an equal amount of sterling in a deposit account.

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

Operations whereby a loan is made in one currency in one country against a loan in another currency in another country.

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.

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.