hard currency

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Related to hard currency: Soft currency

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 ?
The lack of the hard currency is attributed to the sharp falls in national production and exports not to the currency black market'' Omer argued.
Vinayak Potti will focus on the HSBC Total Return emerging markets debt strategies, while Jaymeson Kumm will concentrate on hard currency corporate and sovereign portfolios.
dollar may be susceptible to further depreciation," he continued, "through the Hard Currency Fund, investors can seek protection against a falling dollar with the ease of investing in a no-load mutual fund.
Reuters news analysts said the repatriation might indicate concerns about Iran's ability to access its cash due to sanctions or a need for more hard currency in Iran to pay for investment projects, some of which have suffered from the withdrawal of foreign companies under sanctions pressure.
Van Hoogstraten is to appear in court on charges under currency laws relating to illegal dealing in hard currency and censorship laws on possession of pornography.
In one of the clearest signs yet of the potential regional impact of a conflict in Iraq, [PM] Atef Obaid was forced on Monday [March 3] to deny that the government would place limits on withdrawals from hard currency accounts".
With much of the country's scarce, hard currency going to pay for imported oil and gas, the last thing the government wants is for more people to drive.
If the currency were allowed to appreciate in line with increased hard currency inflows triggered by higher commodity prices, Russia's manufacturing base would collapse.
A new Exchange Control (Tobacco Finance) Order, compels tobacco buyers to buy with foreign currency rather than borrow Zimbabwe dollars locally to finance their tobacco purchases, Zimbabwe's most important source of hard currency.
Nurtured by such distinguished past central bank chiefs as Marius Holtrop, Jelle Zijlstra, and Duisenberg, the Dutch central bank has a long tradition of independence from outside political influences, a longer time horizon for policy, and a proclivity for strong anti-inflationary policies and a hard currency.
Producers and converters liquidated inventories to avoid raw material purchases in Asia to conserve or obtain hard currency.
In a land of sliding-scale equity where convenient connections, more often than actual ability, serves as hard currency, where virtually every actor - and now, even writers and executives - lies about his or her age (and experience), where David Geffen is just the latest mogul to merit a stout biography detailing his every unethical behavior with an obsessiveness than can only mask admiration, ``Cheaters'' may emerge as Hollywood's ultimate how-to film.