Hard currency (also known as a safe-haven currency or strong currency), in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value. Factors contributing to a currency's hard status might include the long-term stability of its purchasing power, the associated country's political and fiscal condition and outlook, and the policy posture of the issuing central bank.
Conversely, a soft currency indicates a currency which is expected to fluctuate erratically or depreciate against other currencies. Such softness is typically the result of political or fiscal instability within the associated country.
Many currencies are neither hard nor soft.
Read more about Hard Currency: In Search of Hard Currencies, Turmoil in Hard Currencies, Demand, Mixed Currencies
Famous quotes containing the words hard and/or currency:
“After all the field of battle possesses many advantages over the drawing-room. There at least is no room for pretension or excessive ceremony, no shaking of hands or rubbing of noses, which make one doubt your sincerity, but hearty as well as hard hand-play. It at least exhibits one of the faces of humanity, the former only a mask.”
—Henry David Thoreau (1817–1862)
“Both of us felt more anxiety about the South—about the colored people especially—than about anything else sinister in the result. My hope of a sound currency will somehow be realized; civil service reform will be delayed; but the great injury is in the South. There the Amendments will be nullified, disorder will continue, prosperity to both whites and colored people will be pushed off for years.”
—Rutherford Birchard Hayes (1822–1893)