Sovereign names definition
Sovereign names
Sovereign names refer to central banks active in the spot market. Sovereign can also be used to label financial instruments like bonds, debt, credit default swaps and more that involve a country’s central bank. Sovereign names may also be referred to as government, public and national and should not be confused for a separate type of security.
How do central banks control the market?
Central banks control the markets by adjusting the supply of money through a process known as open market operations and adjusting bank interest rates to control credit. Central banks control these operations to stabilize currencies, reduce unemployment, and prevent inflation.