(1) Transaction where all the
obligations and liabilities in one transaction are mirrored in a
second transaction. This is used mostly with loans when the first
loan is complete it will transfer over to a second loan.
(2) Transaction where a loan is
given from a country in their specific currency to another country
and vice versa. This transaction is not used very often anymore,
however countries were able to exchange currencies without being
involved in the Forex markets.