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Countries with soft currency tend to have frequent currency devaluation, balance of payment difficulties and political strife. Soft currency is typically not acceptable in exchange for currency of other countries due to its unrealistic exchange rates. Some of the current soft currencies are the peso (Mexico), the Philippine peso, the Hong Kong dollar...
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Some of the current soft currencies are the peso (Mexico), the Philippine peso, the Hong Kong dollar.
How are hard and soft currencies used in global financing?
In the global financing arena, hard currency can be used to offset liquidity or "the condition in which the supply of hard currency or other assets is insufficient to meet the demands of world trade" (IMF)...
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