sovereign risk
A serious form of credit issue where a nation's government is either unwilling or incapable of paying its loan obligations, or the chances that a nation will change its currency policy in a way that affects its currency's forex market value. Forex traders are usually vary wary of being long a currency where the issuing government is showing signs of defaulting on its loans due to the substantial sovereign risk involved.

Browse by Subjects

Popular Forex Terms

formal documents
input cost
debtor side
accrual basis accounting
AA rating
break even analysis