Define: Soft Currency

Business, Legal & 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.

Synonyms For Soft Currency

weak currency, soft currencies

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Soft Currency. Payroll & Accounting Heaven Ltd. April 05, 2020
Chicago Manual of Style (CMS):
Soft Currency. Payroll & Accounting Heaven Ltd. (accessed: April 05, 2020).
American Psychological Association (APA):
Soft Currency. Retrieved April 05, 2020, from website:

Definition Sources

Definitions for Soft Currency are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th January, 2020