noun
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.
中央銀行は軟貨の発行を管理している。
The central bank manages the issuance of banknotes.
noun
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)
その国は軟貨しか持っていなかったため、国際取引が難しかった。
Because the country only had soft currency, international transactions were difficult.