soft currency

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Related to Weak Currency: Soft currency, hard currency, 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 ?
Romania To reduce financing costs and support the weak currency, Romania plans to procure a precautionary loan from the International Monetary Fund (IMF) worth $X billion in the latter half of 2013.
Mr Williams said: "Monetary policy, long-term interest rates below 2% for most of last year and a weak currency are supportive of growth.
Ranbaxy Laboratories rose for the first time in three days amid speculation a weak currency will boost the value of its repatriated earnings.
While not changing the sticker price, Japan's largest meatpacker said Monday it will reduce the net size of 151 products by 5-11 percent to account for higher prices of pork, chicken, vegetable oil and other items as a weak currency makes imported products more expensive.
As legendary financier Jim Rogers stated, a weak currency is a sign of a weak economy, which is the sign of a weak government.
It is not due to Government tax, it is not due to Brent crude going up and it is not due to the weak currency exchange.
Their chairman Brian Madderson said: "It is not due to Government tax, it is not due to Brent crude going up and it is not due to weak currency exchange.
To prevent Korea from gaining an edge in export quote via weak currency, the Central Bank of China (CBC) also allowed the NT dollar to depreciate against the U.
I'm sure our weak currency made a difference and the sales coinciding with a regressive stock market encouraged people to look at other options with their money.
Manufacturing output in April registered the greatest month on month decline since August 2009 and reinforced the growing view that recovery will be far more protracted than forecast, with interest rates likely to remain unchanged despite an inflationary undercurrent fuelled by a high oil price, weak currency and recent tax hikes.
He added: "Factors like a weak currency that should be supporting exporters are working, but it's not working as effectively as it has in the past.
Summary: Loose fiscal policy, weak currency to fuel inflation; Central bank to intervene, aggressive rate hike an option; Investment outflows of up to $1 bln a day; Key tourism revenues take "big hit".