Not sure I agree with this. If you're trading fiat currencies as investment rather than out of travel necessity, you're essentially saying that you think that t

Not sure I agree with this. If you're trading fiat currencies as investment rather than out of travel necessity, you're essentially saying that you think that the governance of one country is over or undervalued in relation to another and you can profit from identifying that discrepancy. It doesn't matter if the country is creating more debt as long as you have faith in the governance of the country and their reasoning for taking out that debt is that it will lead to net value added in the long term. This was very clearly illustrated recently in the UK. Kwarteng and Truss announced a budget that was going to increase the debt of the UK and allow them to give tax cuts to the rich. The markets didn’t see this as adding net long term value to the UK and the currency tanked as a result allowing a lot of people to profit from the forex trade. The value added in a foreign exchange trade is security which is based on the real economic growth of the country behind the currency. If a country is well governed the value of your investment is safe and will grow. If it isn’t, then it will decline. Obviously you also have to be aware that some well governed countries may choose to purposely devalue their currencies as the US historically did (and may do again).