What is the currency of "Transnistria?

Is cross currency spread the risk between any domestic/foreign currency pair alone or can it be construed as the rate of return when you hold a currency pair?

• When I borrow in a cheaper currency and invest in a higher interest paying currency, will the cross currency spread explain the profit/loss that I will be making in the future? Because normally the instance where I have come across cross currency spread in my work is when I am trying to  value a cross currency swap. So for instance, if it's a USD/GBP swap, the  GBP discount curve would be a cross currency adjusted discount curve.  But when I thought more about it, I am expecting this cross currency spread should explain the interest rate differential (intuitively) as  well.

• Answer:

  This is a good intro: http://www.slideshare.net/wbroenni/cross-currency-swaps-an-introduction