Home » Exotic Currency

Exotic Currency

« Back to Glossary Index

An exotic currency is a currency that is thinly traded and highly illiquid. The label “exotic” has nothing to do with the location or size of the country or countries where the currency is used.

Trading in an exotic currency is often an inefficient and expensive process as its lack of liquidity tends to lead to higher spreads in the exchange rate.

Exotic currencies can be both convertible, such as the Mexican peso, and non-convertible, such as the Brazilian real.

Some of the most commonly traded exotic currencies are the Mexican peso (MXN), Chinese yuan (CNY), Russian rouble (RUB), Hong Kong dollar (HKD), Singapore dollar (SGD), Turkish lira (TRY), South Korean won (KRW), South African rang (ZAR), Brazilian Real (BRL) and Indian rupee (INR).

Related
Parabolic

Parabolic describes a market that moves a great distance in a very short period of time, frequently moving in an accelerating Read more

Bitcoin Block

Blocks are data structures within the blockchain database, where transaction data in a cryptocurrency blockchain are permanently recorded. A block records Read more

Monetary Policy

Monetary policy refers to the actions taken by a nation’s central bank to influence the availability and cost of money and credit to Read more

XM Bonus