A debt security (bond, debenture; obligation) that is not issued in the issuer’s domestic currency. – If the exchange rate of the domestic currency falls against the foreign currency (xeno currency), the burden of the debt increases because the securities now have to be serviced – i.e. interest paid and repaid – in the foreign currency, which has become more expensive. – See bond, foreign currency risk. – Cf. Deutsche Bundesbank Monthly Report, July 2008, p. 38 (Foreign currency bonds issued by German states; debt currencies; hedging issues).
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