Refers to paper currency as opposed to coins. The term is somewhat formal or technical; in everyday conversation, 紙幣 or お札 is more common.
soft currency
In economics, a currency that is expected to fluctuate in value or is not freely convertible. Contrasts with 硬貨 (hard currency).
See also: 硬貨 (こうか)
The central bank manages the issuance of banknotes.
Because the country only had soft currency, international transactions were difficult.
軟貨 (soft currency) is the specialized financial opposite of 硬貨 in its 'hard currency' sense.
Compound of 軟 (soft) and 貨 (currency). The term is a direct translation of the English 'soft currency' and 'paper money' (as opposed to hard coin).