The Role of the Central Bank in Sovereign Debt Management

While sovereign debt management is primarily a government function, the central bank plays a crucial and multifaceted supporting role that is critical for financial stability and monetary policy effectiveness. This course provides a detailed analysis of the central bank's involvement, focusing on its functions as the government's banker, fiscal agent, and market advisor. Participants will explore the mechanics of primary market auctions, the management of government accounts, the policy trade-offs between debt management objectives and monetary policy goals, and the potential for **fiscal dominance**. The curriculum emphasizes governance, operational protocols, and the legal limits on central bank financing of the government.