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A parallel loan involves two parties borrowing from each other simultaneously, typically in different currencies, which can help hedge against exchange rate fluctuations. The advantages include reduced currency risk and the ability to access funds in a preferred currency without direct exchange. However, disadvantages include the complexity of managing the loan agreements and potential complications if one party defaults, as this can impact the financial stability of both involved. Additionally, legal and administrative costs may increase due to the need for detailed contracts and compliance with regulations.

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2d ago

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