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What (who) is Soft Currency - definition

GLOBALLY TRADED CURRENCY THAT SERVES AS A RELIABLE AND STABLE STORE OF VALUE

Hard Currency; Hard currencies; Soft currency; Sound money; Safe-haven currency; Safe haven currency; Haven currency; Strong currency; Weak currency

Soft Currency

The currency of a nation in which exchange may be made only with difficulty. Soft currency countries typically have minimal exchange reserves and deficits in their balance of payments. See: Hard Currency

hard currency

(hard currencies)

A hard currency is one which is unlikely to lose its value and so is considered to be a good one to have or to invest in.

The government is running short of hard currency to pay for imports.

N-VAR

Hard currency

In macroeconomics, hard currency, safe-haven currency, or strong currency is any globally traded currency that serves as a reliable and stable store of value. Factors contributing to a currency's hard status might include the stability and reliability of the respective state's legal and bureaucratic institutions, level of corruption, long-term stability of its purchasing power, the associated country's political and fiscal condition and outlook, and the policy posture of the issuing central bank.

https://en.wikipedia.org/wiki/Hard_currency

Wikipedia

Hard currency

In macroeconomics, hard currency, safe-haven currency, or strong currency is any globally traded currency that serves as a reliable and stable store of value. Factors contributing to a currency's hard status might include the stability and reliability of the respective state's legal and bureaucratic institutions, level of corruption, long-term stability of its purchasing power, the associated country's political and fiscal condition and outlook, and the policy posture of the issuing central bank.

Safe haven currency is defined as a currency which behaves like a hedge for a reference portfolio of risky assets conditional on movements in global risk aversion. Conversely, a weak or soft currency is one which is expected to fluctuate erratically or depreciate against other currencies. Softness is typically the result of weak legal institutions and/or political or fiscal instability.

https://en.wikipedia.org/wiki/Hard currency

Examples of use of Soft Currency

1. Or EMU could follow Rome down the path of lax economic policies, leading to a soft currency, higher inflation and weak growth –– a pattern all too common under Italy‘s old currency.