What is a hard currency?

Hard currencies are widely accepted around the world as a form of payment for goods and services and may be preferred over the domestic currency. A hard currency is expected to remain relatively stable through a short period of time, and to be highly liquid in the forex or foreign exchange (FX) market.

What is the youngest hard currency?

The youngest hard currency is the euro, which became the official currency of several European Union nations at the end of the last century. According to The Free Dictionary, a hard currency is: “A currency that is issued by a politically and economically stable country and is therefore well-respected in FX trade.”

What is the difference between soft and hard currency?

The key differences between soft and hard currency are stability, reliability, conversion, and whether or not it is widely accepted as a form of currency. Several factors affect a currency’s “hard status” – including the level of corruption and the long-term stability of its purchasing power.