soft currency

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Related to Weak Currencies: Strong Currency

Soft currency

The money of a country that is expected to drop in value relative to other currencies.

Soft Currency

A currency that fluctuates in value frequently. Soft currencies are generally issued by governments that are less stable and/or have weaker economies than stronger currencies. As such, most soft currencies come from countries in the developing world. Central banks rarely hold reserves of foreign soft currencies as they do little or nothing to stabilize the local currency. A soft currency is also called a weak currency. See also: Strong currency.

soft currency

a FOREIGN CURRENCY that is in weak demand, but in abundant supply on the FOREIGN EXCHANGE MARKET. This situation usually arises when a country is in persistent balance-of-payments deficit. Compare HARD CURRENCY.

soft currency

a FOREIGN CURRENCY that is in weak demand but in abundant supply on the FOREIGN EXCHANGE MARKET. Soft currency status is usually associated with an economically weak country that is running a large deficit in its BALANCE OF PAYMENTS; the supply of the currency is high to finance the purchase of imports, but demand for the currency is relatively weak because the amount of it being required for the purchase of exports 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 a DEPRECIATION 1 in its EXCHANGE-RATE value. Compare HARD CURRENCY.
References in periodicals archive ?
Companies within those economies continue to thrive and grow, capitalising on weak currencies, cheap and stable labour costs and buoyant, fast-growing Asian consumer demand to build strong profitability and solid balance sheets, which in turn finance generous and growing dividends.
Summary: BANGALORE: It is said that the gold has worked down from Alexander's time and its significance has grown even more today as the precious metal is perceived as a shield against financial turmoil, weak currencies and inflation.
Japan will likely need to intervene alone if it were to step in to curb yen gains, as its Group of Seven counterparts, happy with the benefits to exports from their weak currencies, are in no mood for coordinated intervention.
This is why weak currencies must be protected by a powerful umbrella currency such as the dollar or the euro.
Phil Lewis, the brewer's commercial director, said: "Buyers from all over the world have always come to Llanelli to try and broker deals, but our insistence on maintaining standards has meant that exporting to countries with weak currencies has been out of the question.
Countries most exposed tend to have weak currencies, low external trade purchasing power and high prices or where food accounts for high percentage of household expenditure--or all of these.
In a recent meeting in Durban, Health Minister Manto Tshabalala-Msimang said: 'Unfortunately it is the poorer countries with weak currencies and infrastructure that tend to lose their well trained scarce human resources to the wealthier countries who can pay higher salaries.
Weak currencies, lower income and high fuel costs are reportedly also causing problems for airlines in the region, Reuters reported.
There are some bright spots in far flung locations for mercenary tourists willing to target countries in economic strife - therefore with weak currencies.
This bloats the international commodity stockpile and drives down prices which in turn devalue weak currencies.
An unsavory combination of civil strife, government instability, weak currencies, and inflation has left most consumers in the region destitute, with little hope of purchasing more than the bare necessities of life.
warned Friday that profits are being hurt by weak currencies and that its first-quarter earnings will be slightly below Wall Street's expectations despite some encouraging signs from its European and U.