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 ?
He noted that the one ray of light was an improvement in manufacturing export growth to the best for two years as the weak pound helped drive overseas sales, though producers also suffered the flip-side of a weak currency as import prices spiked higher.
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.
USPRwire, Tue Jun 28 2016] A weak currency exchange rate and the implementation of the Goods and Services Tax in April 2015 may drive price hikes for pet products in 2016.
The South African economy has been impacted by slow growth and a weak currency, that have been compounded by a drought that has yielded in higher food rates.
The South African economy has been hit by slow growth and a weak currency, which have been compounded by a drought that has resulted in higher food prices.
A weak currency is supposed to boost a country's exports by enhancing price competitiveness, but exports are continuing to decrease despite the cheap Korean won.
Reuters reported last month that Petrobras could be forced to make new cuts to its five-year plan, announced in late June, as the burden of falling oil prices, rising interest payments and a weak currency made the programme obsolete.
Meanwhile, South Africa's ongoing economic malaise -- exacerbated by commodity prices and a weak currency -- means that domestic banks will be keen to look elsewhere for growth prospects.
From a German national standpoint, this was his greatest legacy: Germany now enjoys the world's largest trade surplus and a weak currency, a state of nirvana for its economy.
The expert urges investors to keep in mind the fact that weak growth in China "won't automatically translate" into a weak currency.
A weak currency becomes a problem when a country has high levels of foreign-currency-denominated debt with short-term maturities.
A weak currency can provide a boost to exports, and thus contribute to a wider economic recovery if companies raise wages and create new jobs.