Category: Hard Currency

Downsides of a Hard Currency

Hard currencies are more valuable than other currencies. For instance, as of Nov. 6, 2020, the FX market traded at a rate of 6.61 yuan per U.S. dollar and 73.97 rupee per dollar.56 These exchange rates are detrimental for Chinese and Indian importers but positive for current account balances. A weak exchange rate helps a...
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Example of Hard Currencies in Action

Within the hard currency group, the Canadian and Australian dollars are sensitive to commodity prices but they weather these dips better than other countries much more dependent on commodities. For example, the collapse of energy prices in 2014 hurt both the Australian and Canadian markets, but it was far...
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Understanding Hard 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. The most tradable currencies in the world are the U.S. dollar (USD), European euro (EUR), Japanese yen (JPY), British pound (GBP), Swiss franc (CHF), Canadian dollar...
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What is Hard Currency?

Hard currency refers to money that is issued by a nation that is seen as politically and economically stable. 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....
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