Commodity currency Canadian dollar, New Zealand dollar, Norwegian krone, South African rand, Brazilian real, Russian ruble and the Chilean peso. Due to the nature of commodity currencies being tied to commodities, being tied to any one good can be beneficial as well as problematic for the country. While naturally, falling or rising exports will lead to deflation or inflation respectively in any country the impacts are more severe in countries with commodity currencies at their currency is so heavily tied to a set few commodities. According to a 2009 study on commodity currency titled “Can Exchange Rates Forecast Commodity Prices?” by Yu-chin
Hard currency Hard currency Hard currency, safe-haven currency or strong currency is any globally traded currency that serves as a reliable and stable store of value. Factors contributing to a currency's "hard" status might include the long-term stability of its purchasing power, the associated country's political and fiscal condition and outlook, and the policy posture of the issuing central bank. Safe haven currency is defined as a currency which behaves like a hedge for a reference portfolio of risky assets conditional on movements in global risk aversion. Conversely, a soft currency indicates a currency which is expected to fluctuate erratically or depreciate