hard currency


Definition of hard currency

: money that comes from a country with a strong government and economy and that is not likely to lose its value

Learn More about hard currency

Statistics for hard currency

Last Updated

31 Oct 2019

Cite this Entry

“Hard currency.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/hard%20currency. Accessed 8 December 2019.

Keep scrolling for more

More Definitions for hard currency

hard currency


Financial Definition of hard currency

What It Is

Hard currency is currency that has been adopted as an acceptable payment method in multiple countries.

How It Works

Hard currencies are generally issued by developed countries that have a strong industrial economy accompanied by a stable government. The most common hard currencies include the U.K. pound sterling (GBP), the euro (EUR) and U.S. dollar (USD).

Why It Matters

Hard currencies display high stability and typically experience only minor short-term fluctuations in the foreign exchange market. Hard currencies are frequently used to denominate commodities and serve as a benchmark for foreign exchange markets. As a result, instability in hard currencies can lead to a loss in confidence with worldwide effect on markets.

Source: Investing Answers

Comments on hard currency

What made you want to look up hard currency? Please tell us where you read or heard it (including the quote, if possible).


to constrict the range or activity of

Get Word of the Day daily email!

Test Your Vocabulary

Semantic Drift Quiz

  • a twisty river
  • Which of the following was once a synonym for fun?
Spell It

Can you spell these 10 commonly misspelled words?

Dictionary Devil

Test Your Knowledge - and learn some interesting things along the way.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!