Hard Currency - in Search of Hard Currencies

In Search of Hard Currencies

Varying theories of monetary policy, and the ever-present risk of unexpected geopolitical and policy events, preclude any claim of a currency's hardness from being called definitive.

The paper currencies of some developed countries have earned recognition as hard currencies at various times, including the United States dollar, Euro, Swiss franc, British pound sterling, Japanese yen, and to a lesser extent, the Canadian dollar and Australian dollar. Times change, and a currency that is considered weak at one time may become stronger, or vice versa. However, countries that consistently run large trade surpluses tend to have hard currencies.

One barometer of hard currencies is how they are favored within the foreign-exchange reserves of countries:

Currency composition of official foreign exchange reserves
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Latest Data
'12 Quarter II
US dollar 59.0% 62.1% 65.2% 69.3% 71.0% 70.5% 70.7% 66.5% 65.8% 66.0% 66.4% 65.7% 64.1% 64.1% 62.1% 61.8% 62.2% 61.9%
Euro 17.9% 18.8% 19.8% 24.2% 25.3% 24.9% 24.3% 25.2% 26.3% 26.4% 27.6% 26.0% 25.0% 25.1%
German mark 15.8% 14.7% 14.5% 13.8%
French franc 2.4% 1.8% 1.4% 1.6%
Pound sterling 2.1% 2.7% 2.6% 2.7% 2.9% 2.8% 2.7% 2.9% 2.6% 3.2% 3.6% 4.2% 4.7% 4.0% 4.3% 3.9% 3.8% 3.8%
Japanese yen 6.8% 6.7% 5.8% 6.2% 6.4% 6.3% 5.2% 4.5% 4.1% 3.8% 3.7% 3.2% 2.9% 3.1% 2.9% 3.7% 3.5% 3.8%
Swiss franc 0.3% 0.2% 0.4% 0.3% 0.2% 0.3% 0.3% 0.4% 0.2% 0.2% 0.1% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1%
Other 13.6% 11.7% 10.2% 6.1% 1.6% 1.4% 1.2% 1.4% 1.9% 1.9% 1.9% 1.5% 1.8% 2.2% 3.1% 4.4% 5.4% 5.3%
Sources:

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Famous quotes containing the words search and/or hard:

    At the ground of all these noble races, the beast of prey, the splendid, blond beast, lustfully roving in search of spoils and victory, cannot be mistaken.
    Friedrich Nietzsche (1844–1900)

    It is what we imagine knowledge to be:
    dark, salt, clear, moving, utterly free,
    drawn from the cold hard mouth
    of the world, derived from the rocky breasts
    forever, flowing and drawn, and since
    our knowledge is historical, flowing, and flown.
    Elizabeth Bishop (1911–1979)