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Term of the Day

Hard currency

Hard currency, in economics, refers to a currency in which investors have confidence, such as that of a politically stable country with low inflation and consistent monetary and fiscal policies, and one that if anything is tending to appreciate against other currencies on a trade-weighted basis. Examples of hard currencies at this time include the United States Dollar, the Euro, the Pound Sterling, the Japanese Yen, and the Swiss Franc. Before its replacement with the Euro the Deutschmark was considered perhaps the hard currency par excellence.



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