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It USED to be the comparison between paper money and metal money.

Now it's just a reference to the assumed stability of two soft currencies. Note A hard currency is freely convertible into other currencies, but a soft currency is hedged about with restrictions on its conversion into other currencies. In some cases a soft currency may be a purely internal currency with no or almost no convertibility.

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Q: What is the difference between softcurrency and hardcurrency?
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