# Foreign (xeno) currency bond

- Canonical URL: https://www.gerhardmerk.de/foreign-xeno-currency-bond
- Post ID: 590027
- Modified: 2023-07-25T21:00:44+00:00
- Language: en

## Definition

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). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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