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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
These data not only poke a hole in the layman's notions about the wonders of weak currencies, but also illustrate why most politicians are ignorant of the basic facts, and could be successfully prosecuted for false advertising.
Rising costs of raw materials, weak currencies and high energy costs have continued to put pressure on the industry to reduce cost and improve efficiency.
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.
Our fiscal deficit is also managed within the limits, this year itAEs at 1.8 per cent and our inflation has been in AaAaAaAaAaAaAaAaAaAaAaAa single digit.o Without any doubt countries with commodity-driven economies, weak currencies and high inflation such as those in Africa will carry the brunt of the global financial crisis.
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.' She urged sub-Saharan countries to speak with one voice to encourage those countries who were poaching staff to engage in ethical recruitment or consider compensation for the countries from which they were taking health workers.
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.
Weak currencies in South America meant that the feat was not repeated in 2002, when sales in France accounted for about 51% of the company's revenues.
This bloats the international commodity stockpile and drives down prices which in turn devalue weak currencies. Poor countries are forced to buy food from the rich nations to fill the shortage thus created - but because of their weak currencies, they end up paying progressively more each year for the same bag of imported maize or wheat.
Although weak currencies in South Africa and Australia helped offset some of the falls, it was not enough to prevent a drop-off in group profits.
But fans in Australia and Latin America claim they have been left high and dry because their weak currencies mean any gigs there would struggle to stay out of the red.
Back at Swindon, where work has started on a pounds 450 million second factory, Mr Davies stressed that Honda's system of Takai, or flexible, manufacturing allowed it to switch production quickly and so offset problems caused by chronically weak currencies, such as the euro.