// TRADING TERMINOLOGY
What is Sovereign Debt?
Debt issued by a national government in a foreign currency, in order to finance the issuing country's growth and development.
In-Depth Explanation
Also known as "Government Bonds." The stability and credit rating of a country's sovereign debt directly affects its currency value.
Practical Example
"Investors are flocking to US Treasuries as a safe-haven asset, strengthening the Dollar."
Related Terms
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