Business, Legal & Accounting Glossary
A soft currency is a currency that is not freely convertible and for which there is only a thin market.
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.
Two examples of soft currencies are The Zimbabwe dollar and the Venezuelan bolivar.
A 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.
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This glossary post was last updated: 6th January, 2020