Why does a state have both currency reserves and sovereign debt simultaneously?

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When I have excess money I wouldn’t think of taking a loan which is much smaller than my savings. Why does a sovereign state issue sovereign bonds to borrow tens of billions dollars when it has in reserve over half a trillion dolars?

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Anonymous 0 Comments

Not all loans allow early repayment, so even if they wanted to use their cash to pay off their debt, they couldn’t. Not to mention that they need some cash for liquidity purposes short term

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