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Currency Swap
A financial agreement to exchange principal and/or interest payments of a loan in one currency for equivalent amounts in another currency.
Exchange Rate Risk
The potential for investors to experience losses due to changes in currency exchange rates.
Interest Rate Swap
A financial derivative agreement between two parties to exchange one stream of interest payments for another, based on a specified principal amount.
Floating-Rate Loan
A loan with an interest rate that adjusts periodically based on a reference interest rate index, reflecting changes in market interest rates.
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