Exotic Currency

An exotic currency is a currency from a smaller or emerging economy. It is less commonly traded in the global foreign exchange (Forex) market. These currencies typically have lower liquidity, higher volatility, and wider spreads compared to major currencies like the US dollar (USD), euro (EUR), or Japanese yen (JPY). Examples of exotic currencies include the Turkish lira (TRY), Thai baht (THB), South African rand (ZAR), and Brazilian real (BRL). Exotic currency pairs are usually formed by pairing one exotic currency with a major currency, such as USD/TRY or EUR/ZAR.

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