Question

Explain why most bonds which are issued for the international community issued in only a few specific currencies? Which currencies are most widely used?

Answer 1

Most bonds which are issued for the international community's are issued in only specific currency which are widely traded in the international market because various currencies are just limited to their domestic territory so they do not have the international significance whereas currencies like dollars as well as pounds and Euros are having a very higj tradibility along with Japanese yen, So, These will be most preferred currency while corporate are issuing bonds in international Arena so they will with trying to look for those currencies which are having a high tradibility as well as very high level of acceptance because they are held as a foreign reserve in other currencies as well.

Rest of the currencies are just limited to the domestic territories and they will not be having a higher tradibility in other countries so they will often issuing their bonds in only those currency is which are highly tradable and these currency the widely used as foreign reserves in other countries so they will be providing the benefit to the coverage of a large group of investor when they are issuing their bonds in dollars or euros because they are having a very high level of acceptance and international tradability.

This will help these corporates in order to raise most of the money because these currencies are having a very high International acceptability and high tradability all across the globe.