hard currency

noun
Updated on: 13 Oct 2017

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

Word by Word Definitions

hard play
  1. : not easily penetrated : not easily yielding to pressure

  2. : not capable of being spread : very firm

  3. : having a harsh or acid taste

  1. : with great or utmost effort or energy : strenuously

  2. : in a violent manner : fiercely

  3. : to the full extent

currency play
  1. : circulation as a medium of exchange

  2. : general use, acceptance, or prevalence

  3. : the quality or state of being current : currentness


Financial Definition of HARD CURRENCY

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.


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