- April 2014
- Posted By Ninoslav
- 0 Comments
You must have come along this word often when watching television or going through the market news in newspaper. Well Hard currency is something that can also be termed as a currency that is strong. It is mainly used in the global business market in order to store or preserve the value of the currency.
What are the features of this currency?
There are number of features in this currency system, some of them are that the strength to posses buying power and have stability that is for a long time period. Country whose value is stored is having proper political and financial development to stand to strength of this currency system. Another major factor is central bank having good market policy.
What is soft currency system?
Soft and hard currency is interrelated and you have to know what it actually means. Soft currency is something that loses its value or changes its policy to other monetary systems. There is financial and political problem in the country then.
What are the hard currencies now?
The monetary currencies of most of the countries are now said to fall under Hard currency. They are United States dollar, yen in Japan, euro, franc in Swiss, pound in Britain, sterling, dollar of Canada and Australia as well. You never know those currencies that are said to have weaker portions in monetary systems can turn out to be strong enough as financial sector of that country develops strongly.
Mostly, people and tradesmen prefer hard than soft currency because hard currency is more reliable and in these days of inflation hard currency can help tackle political and rate of exchange problems in a country.
Now that you know what Hard currency is, you can understand foreign market well. To know more read “What is currency pair and how does it work in the foreign exchange market?”