Define: Soft Currency

UK Accounting Glossary

Definition: Soft Currency


Quick Summary of Soft Currency


A currency that is not freely convertible and for which only a thin market exists.



What is the dictionary definition of Soft Currency?

Dictionary Definition


A soft currency is a currency that is not freely convertible and for which there is only a thin market.


Full Definition of Soft Currency


A soft currency is one with a value that fluctuates, predominantly lower, as a result of the country’s political or economic uncertainty. As a result of the of this currencies instability, foreign exchange dealers tend to avoid it.

In financial markets, participants will often refer to it as a “weak currency.”

Two examples of soft currencies are The Zimbabwe dollar and the Venezuelan bolivar.



Examples of Soft Currency in a sentence


soft currency and high deficits is no friend of the European citizen of the present or the future.

We worry unduly about the countries which will stay out and pursue soft currency policies in order to gain competitiveness.


Soft Currency FAQ's


What is the meaning of soft currency?

A soft currency is one with a value that fluctuates, predominantly lower, as a result of the country’s political or economic uncertainty. Also known as a weak currency.

Is the Indian rupee a soft currency?

Indian Rupee is a soft currency as it’s exchange rate keeps on fluctuating.


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Definition Sources


Definitions for Soft Currency are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th May 2019.