The growing political momentum to form a monetary union by 1999 is prompting European investors to worry about a new soft currency-- the Euro.
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In 1999, he built the first hard to soft currency exchange in an online game, allowing players to exchange earned in-game gold for purchased credits.
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In some economies, which may be either planned economies or market economies using a "'soft currency "', there are special stores that accept only hard currency.
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In its most recent quarter, DuPont said that soft currencies overseas, particularly in Europe and Asia, dragged its sales down by 2 percent worldwide, ultimately costing the company $ 35 million in net income.
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In thinly veiled references to Italy, German central bankers have warned the euro will be a soft currency if it is thrown open to countries lacking a " sustainable " track record of sound government finance.
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Third, fixing the exchange rate between the local currency and the dollar to eliminate or reduce risks for foreign investors stemming from the fluctuations in the value of what were viewed as the region's " soft currencies ".
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In a panel discussion with editors of the Stuttgart Nachrichten newspaper late Wednesday, Schrempp said he would fight to keep jobs in Germany, but might be forced to move the aerospace division's production to China, or another soft currency nation.
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The Euro " could be a soft currency because there won't be one strict monetary policy and one strict fiscal policy, " said Kim Thomsen, head of bonds at Danske Invest in Copenhagen, which manages $ 2 billion in global bonds.
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"Germany must not give up its position as guardian of stability in the preparation for the 1999 currency union, " he said, adding : " If the euro becomes a soft currency, it will have no acceptance among the German public ."
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Derand said it's clear that " the necessary technical requirements for such a revolutionary change won't be met by January 1999 . But the politicians are determined to keep to their schedule . . . This means the euro will be burdened by uncertainty because . . . the money markets will regard it as a soft currency, at least at the start ."
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