Answer:
Currency swap.
Step-by-step explanation:
A currency swap is an agreement or a contract between the two parties. Involves the exchange of interest and sometimes of principal in one currency for the same in another currency. Interest payments are exchanged at fixed dates through the life of the contract.
It is considered to be a foreign exchange transaction and is not required by law to be shown on a company's balance sheet. Two parties exchange principal amount and interest that incur in different currencies. The dual purpose of a currency swap is to hedge exposure to exchange rate risk, or helps reduce the cost of borrowing a foreign currency.