What's wrong with the currency of your country


Hard currencies, soft currencies

In a broader sense, the legal order of the monetary system of a country (monetary order, currency order), especially the determination of the coin system, the determination of the legal tender with mandatory acceptance and the determination of their exchange ratio with foreign currencies (currency parity, exchange rate) In the narrower sense the monetary unit, the legal tender of a country, whereby one differentiates the individual national currencies (foreign currency, currency units) according to the name of the monetary unit (e.g. euro, dollar currency). Hard currencies are currencies that have proven to be stable in value, are viewed as particularly secure and are characterized by full convertibility (see there). As opposed to hard currencies soft currencies apply e.g. B. the Swiss franc or key currencies such as the US dollar.

Monetary policy refers to all measures that are aimed at optimally shaping the currency of a country and the coexistence of the currencies of different countries. One or more countries with a single currency form a currency area. Such a monetary union (see there) is z. B. the European Monetary Union (EMU) with the euro as the single currency. The most important bearer of currency policy is the central bank (in EMU the European Central Bank), internationally also the International Monetary Fund.

Duden Wirtschaft from A to Z: Basic knowledge for school and study, work and everyday life. 6th edition. Mannheim: Bibliographisches Institut 2016. Licensed edition Bonn: Federal Agency for Civic Education 2016.