This is one of the many risks that an investor faces when holding forex contracts. Additionally an investor is exposed to interest-rate risk, price risk and liquidity risk amongst others.
Investment dictionary. Academic. 2012.
sovereign risk — The risk that a central bank will impose foreign exchange regulations that will reduce or negate the value of foreign exchange contracts. Also refers to the risk of government default on a loan made to a country or guaranteed by it. The… … Financial and business terms
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. The New York Times Financial… … Financial and business terms
sovereign risk — The risk of investment in foreign countries in which the political and economic situation might lead to a government expropriation of private assets … Accounting dictionary
sovereign risk — See political credit risk … Big dictionary of business and management
sovereign risk — /ˌsɒvrɪn rɪsk/ noun a risk that a government may default on its debts (a government cannot be sued if it defaults) … Dictionary of banking and finance
Risk — Typically defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. The New York Times Financial Glossary * * * ▪ I. risk risk 1 [rɪsk] noun 1. [countable, uncountable] the possibility that… … Financial and business terms
risk — (1) Noun The possibility of loss. (2) Noun The uncertainty of whether events, expected or otherwise, will have an adverse impact. In this context, the adverse impact is usually a quantity of return ( income) or value at risk. (3) Noun the… … Financial and business terms
sovereign — /ˈsɒvrən / (say sovruhn) noun 1. someone who has sovereign power or authority, especially a monarch. 2. a group or body of persons or a state possessing sovereign authority. 3. a former British gold coin. –adjective 4. belonging to or… …
Risk arbitrage — Risk arbitrage, or merger arbitrage, is an investment or trading strategy often associated with hedge funds. Two principal types of merger are possible: a cash merger, and a stock merger. In a cash merger, an acquirer proposes to purchase the… … Wikipedia
Sovereign default — A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full. It may be accompanied by a formal declaration of a government not to pay (repudiation) or only partially pay its debts (due… … Wikipedia
