Soft Currency
Another name for "weak currency". The values of soft currencies fluctuate often, and other countries do not want to hold these currencies due to political or economic uncertainty within the country with the soft currency. Investopedia Says:
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 currency to a currency such as the U.S. dollar. Related Terms:
Country Risk
Currency
Exchange Rate
Hard Currency
Hard Money
Pegging
Political Risk
Soft Money |