hard currency(redirected from Hard currencies)
Also found in: Dictionary, Thesaurus.
hard currencya FOREIGN CURRENCY that is in strong demand, but in short supply on the FOREIGN EXCHANGE MARKET. This usually arises when a country is in persistent balance of payments surplus. Compare SOFT CURRENCY.
hard currencya FOREIGN CURRENCY that is in strong demand but in short supply on the FOREIGN EXCHANGE MARKET.
Hard-currency status is usually associated with an economically strong country that is running a large surplus on its balance of payments; demand for the currency is high to finance purchases of its exports, but the supply of the currency is relatively limited because the amount of it being made available through the purchase of imports is much lower. Under a FLOATING EXCHANGE-RATE SYSTEM, however, the demand for, and supply of, the currency should be, in theory, brought into balance by an APPRECIATION of its EXCHANGE-RATE value. Compare SOFT CURRENCY.