Multicurrency loans – An attractive option or an additional risk?

The term 'multicurrency' refers to currency in more than one denominator. It may also be referred to as 'cross-currency'. It's nothing more than financing your asset (e.g. in Australia) with another currency (very often the currency in which your income is generated) with the underlying currency (AUD) being converted(at the prevailing exchange rate) at the time when the multicurrency loan is disbursed.