Foreign Currency Loan
/ˈfɒrɪn ˈkʌrənsi loʊn/
Definitions
- (n.) A loan denominated in a currency different from the borrower's domestic currency, exposing the borrower to exchange rate risk.
The company took out a foreign currency loan to finance its operations abroad.
Forms
- foreign currency loan
- foreign currency loans
Related terms
See also
Commentary
Foreign currency loans carry inherent exchange rate risk, so legal agreements often include specific clauses addressing currency fluctuations and repayment terms.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.