Sovereign Currency

A sovereign currency is a national currency issued and regulated by a country’s government or central bank. It holds value because the government declares it legal tender, and people trust that it can be used to buy goods, pay debts, and settle transactions within that country. The government manages the currency’s supply and stability to support economic growth and prevent inflation. Examples include the US dollar, euro, and Japanese yen. Essentially, it’s the official currency that represents a nation’s economic identity and facilitates everyday financial activity.