hard currency

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Hard currency

A freely convertible currency that is not expected to depreciate in value in the foreseeable future.

Hard Currency

A currency that is issued by a politically and economically stable country and is therefore well-respected in FX trade. Large, international transactions are often settled in one hard currency or other. The market to buy and sell hard currencies is especially liquid, even by the standards of foreign exchange trading. The price of a hard currency often remains stable in the short-term. Examples of hard currencies include the U.S. dollar, the British pound, the euro, and the Japanese yen.

hard currency

a 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 currency

a 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.

References in periodicals archive ?
Insurance to compensate for business interruptions, particularly when those stoppages affect the hard currencies of the venture, is not readily available in China on a cost-effective basis.
Consequentially, investors should consider whether it might be prudent to diversify their portfolios with a fund that invests in a basket of hard currencies that includes gold.
The shift in government policies away from market-oriented frameworks, coupled with the adverse effects of the ARP's devaluation on a leveraged capital structure largely denominated in hard currencies, the loss of value of some assets and operations, a sharp reduction in capital expenditures and lower realized revenues associated with Venezuelan operations due to that nation's oil strike, contributed to a fiscal year 2002 net income loss of ARP1.
8% at end-June 2002), it has also built-up a large liquidity reserve, over 80% of which is made up of deposits in banks outside the region rated 'A' or better and high-grade assets denominated in hard currencies.
Citibank is already able to offer financial products and services to resident and non-resident companies in both rubles and hard currencies.