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Glossary > S > "Sovereign risk" Definition

Sovereign risk

The risk that a central bank will impose foreign exchange regulations that will reduce or negate the value of FX contracts. Also refers to the risk of government default on a loan made to it or guaranteed by it.

See: "country-specific" risk

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Sovereign risk - The risk that a central bank will impose foreign exchange regulations that will reduce or negate the value of FX contracts. Also refers to the risk of government default on a loan made to it or guaranteed by it.

See: "country-specific" risk

Sovereign risk : the risk that a central bank will impose foreign exchange regulations that will reduce or negate the value of fx contracts. also refers to the risk of government default on a loan made to it or guaranteed by it.

see: "country-specific" risk