Multi-currency clause (also referred to in German as Währungswahlvereinbarung)

A credit facility (credit line: the amount committed to a borrower up to which the borrower may borrow from the bank) that may be drawn on optionally in two or more of the currencies agreed in the contract, sometimes called a multi-currency credit line. – A company can choose to draw down a loan in one of several currencies on the basis of a contractual agreement with the bank. – A payment can optionally be made in two currencies (rarely more) according to the contract. This reduces the currency risk for the debtor. – See bond, currency-selectable, dual-currency bond, reference currency, value clause.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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