The term exorbitant privilege refers to the benefits that the United States, as the world's supplier of safe assets, derives from its own currency being the international reserve currency. These safe assets, primarily government debt, tend to be sold at higher prices than the debt of other governments. Exorbitant privilege enables the United States to borrow beyond the fiscal capacity of other states. It also reduces price volatility in U.S. foreign trade, and gives the U.S. the means to impose costly sanctions on other states.