Parallel loan

Definition:

A process whereby two companies in different countries borrow each other's currency for a specific period of time, and repay the other's currency at an agreed maturity for the purpose of reducing foreign exchange risk. Also referred to as back-to-back loans.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Foreign Credit Insurance Association (FCIA)

A private consortium of US insurance companies that offers trade credit insurance to US exporters in conjunction with the US Export-Import Bank.

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