One relative measurement of foreign debt safety is that foreign exchange reserves should not be less than outstanding short-term foreign debts. Governments can lower their foreign debts by rescheduling their obligations or simply by paying them off. Foreign countries typically hold U.S. debt in the form of short- and long-term government-issued bonds.
Investment dictionary. Academic. 2012.
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foreign debt — ➔ debt * * * foreign debt UK US noun [C or U] ECONOMICS, FINANCE ► money that the government and organizations in one country have borrowed from organizations and governments in other countries : »The country s total foreign debt is estimated at… … Financial and business terms
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