Soft Currency

Filed Under »
Dictionary Says

Definition of 'Soft Currency'

A currency with a value that fluctuates as a result of the country's political or economic uncertainty. As a result of the of this currency's instability, foreign exchange dealers tend to avoid it.

Also known as a "weak currency".

Investopedia Says

Investopedia explains 'Soft Currency'

Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Currency

    A generally ...
  2. Hard Currency

    A currency, ...
  3. Hard Money

    1. Funding by a ...
  4. Soft Money

    1. The ...
  5. Countertrade

    International ...
  6. Country Risk

    A collection of ...
  7. Exchange Rate

    The price of one ...
  8. Pegging

    1. A method of ...
  9. Confederate Dollar

    A currency ...
  10. Barter

    The act of ...

Articles Of Interest

  1. Dollarization Explained

    Find out how fledgling economies can find some stability in their currency and attract foreign investment.
  2. Dual And Multiple Exchange Rates 101

    Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work.
  3. Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  4. What Is Money?

    It's a part of everyone's life, and we all want it, but do you know how it gains value and how it is created?
  5. Are eurodollars related to the currency called the euro?

  6. An Introduction To Complementary Currencies

    There are alternatives to national currencies. Discover complementary currencies and how they work.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center