What exactly are sovereign bonds? When a government issues such a bond it is called a sovereign bond. Typically, the more financially strong a country, the more well respected is its sovereign bond. AdvertisingThe current controversy relates to India’s sovereign bonds that will be floated in foreign countries and will be denominated in foreign currencies. That is why, if the exchange rate is expected to worsen, sovereign bonds denominated in domestic currency are preferable.

Source: Indian Express July 24, 2019 18:45 UTC