Why do commercial banks reinvest foreign currency deposits into the issuing country’s sovereign debt?

By Kalsoom Tahir

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Fact Checked

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Difficulty Medium

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Published 05 Sep 2026

A. To decrease capital reserve ratios

B. To manage liquidity and earn yields

C. To offset domestic tax liabilities

D. To support fixed exchange rate pegs

📚 Topics: International Current Affairs

🎯 Exams: CSS GEN PMS UK_CS US_COMP

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