Hard-currency-oriented

Describing an economy, business, or individual whose financial strategies, investments, and transactions primarily focus on assets and currencies perceived as stable and widely accepted internationally, particularly those issued by countries with strong economies and low inflation. This orientation often involves prioritizing investments in readily convertible currencies like the US dollar, Euro, Japanese Yen, or British Pound, due to their liquidity and lower risk of devaluation. This approach aims to safeguard against economic instability and fluctuating exchange rates, typically observed in volatile markets.

Hard-currency-oriented meaning with examples

• The developing nation's government adopted a hard-currency-oriented monetary policy to curb inflation and attract foreign investment. It involved pegging its currency to the US dollar, a measure aimed at increasing stability, and enhancing its credit worthiness among international financial institutions and investors, fostering a more secure economic climate for long-term prospects.
• Due to concerns about rising inflation, the company shifted towards a hard-currency-oriented investment strategy. This involved purchasing US Treasury bonds and diversifying portfolios into other liquid assets denominated in stable currencies, thereby protecting against potential depreciation of the local currency and maintaining purchasing power.
• High net-worth individuals in the country favor hard-currency-oriented savings accounts, offering protection against currency devaluation. This entails holding assets like US dollars, Euros, and other readily convertible foreign currencies, viewed as a hedge against any decline in their domestic currency's value, ensuring their wealth remains more stable.
• The tourism sector, faced with economic volatility, aimed for hard-currency-oriented pricing structures. They set their prices in US dollars or Euros, to insulate against devaluation and ensuring revenues remained stable in the face of currency fluctuations, which in turn would encourage continuous investment in the hospitality infrastructure.
• Emerging market businesses frequently opt for a hard-currency-oriented trade strategy. They set transactions in US dollars or Euros, and importing or exporting is performed this way, making the business easier to operate, and they can easily mitigate the risks from the instability associated with local currencies.