Definition of hard currency

1. currency expected to remain stable, if not appreciate in value, in relation to other currencies; also a currency that is readily convertible, or exchanged for the currency of another country.A sizable portion of international trade and bank lending is denominated in hard currencies; central banks keep a portion of their reserves in these currencies. Also called strong currency,
2. gold bullion of gold coins, as opposed to paper money, which is not convertible into an equivalent amount of gold or other precious metal.

currency recognized internationally to be relatively stable in value and readily acceptable in most international transactions. Examples of hard currency are the U.S. dollar, the Swiss franc, and the German mark.