Back-to-back loan means that two companies located in different countries borrow the same amount of money from each other in the other country to hedge the risk of currency fluctuation.

Generally speaking, back-to-back loans are like two (friends). The son of an American is in China, and the son of a China is in the United States. Now A China's son is short of money in the United States and needs money to spend. What should I do? All things considered, let Americans give China's son a sum of dollars. For the sake of reciprocity, China people always exchange US dollars into RMB at the current exchange rate and give them to American sons. On the contrary, if an American son is short of money in China, he can do the same. To put it bluntly, back-to-back loans are two friends (companies, individuals, families, etc. ) give money to your relatives and friends in different places.

2. China-Arab currency swap regulations?

Both American parent companies and Swiss parent companies need to raise funds from subsidiaries. If you remit money directly in local currency, you need to go through the foreign exchange market and be subject to foreign exchange control. If the two parent companies concerned sign a parallel loan agreement, convert it into the loan amount of the other country at the agreed exchange rate and lend it to the subsidiary of the other country at the agreed interest, foreign exchange control can be circumvented without guarantee. If one party defaults, it can be offset by the debt of the other party.

In currency swap, the two sides of the swap do not borrow money from each other, but sell the money to each other through agreement and promise to exchange it on a fixed date in the future.

3. What is a back-to-back loan? How to operate

What is your WeChat account number?

4. What is back-to-back loan?

Borrowing between homosexuals is called back-to-back borrowing.