An exotic cross-currency swap whose maturity is typically long-dated, up to 30 years, while its coupons are options on the forex rate (typically a dollar-yen rate). In this sense, a power reverse dual currency (PRDC) swap is exposed to moves in the exchange rate (domestic against foreign), and to moves in the interest rates in both currencies. PRDC swaps are often Bermudan-style callable, or may come with knock-out features. For example, this swap may contain a FX target redemption (FX-TARN) provision, providing a cap on the FX-linked PRDC coupon amounts, so that once the accumulated coupon amount reaches the cap level, the PRDC swap automatically terminates.
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