soft currency

(redirected from Weak 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 ?
First, a weak currency makes the Chinese exports more competitive.
The company's net profits have decreased by 48 percent due to Ooredoo Algeria's low contribution as a result of ineffective economic environment, weak currency, and low competitive prices, it added.
Many criticise the weak currency but if you look at many countries in the region their currencies are much weaker and all these are beyond the control of the Government, the minister said.
While a weak currency causes concern among importers and sectors relying on imported goods, it bodes well for local consumption as it boosts the purchasing power of the dollars sent home by millions of Filipino migrant workers.
In January, Saudi Arabia, ordered a deposit of USD2bn into Yemen's central bank to prop up the weak currency and help alleviate the people's suffering.
The best price, at 32ppl, will come from a weak currency and a hard Brexit.
The relative strength of the euro to the Swiss currency, especially during the last two weeks, does not turn the franc into a weak currency, but reduces its latent overvaluation to the euro.
May 25, 2017 (JUBA) - Kenya's Equity Bank Group has announced the closure of seven of its branches operating in war-torn South Sudan over the deteriorating economy, weak currency and hyperinflation.
I find it extremely short-term thinking for people to believe that a weak currency is a good thing."
Samuel Tombs of Pantheon Macroeconomics said the weak currency was "entirely responsible" for the pick-up in inflation.
The chorus of officials dubbing China a currency manipulator grew louder as China's cost advantages and relatively weak currency spurred continued economic momentum.
Fuels consumption growth will remain relatively subdued, as high inflation and a weak currency weighs on consumer spending, whilst a poor macroeconomic outlook dulls demand in the domestic power and industrial sectors.