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Cross-currency swap - Financial definition

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Synonym:  currency swap

Concise definition of the term cross-currency swap

A contract by which two counterparties agree to exchange specific amounts of two different currencies at the outset and to make repayments over time. In a currency swap, interest payments in two currencies are exchanged over the life of the contract, and the principal amounts are repaid either at maturity or according to a predetermined amortization schedule.

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