The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

EXOTIC CURRENCY Definition & Legal Meaning

Definition & Citations:

A currency that is not widely used in international trade and financial transactions and is thinly traded in the FOREIGN EXCHANGE markets; the general lack of LIQUIDITY can result in increased price VOLATILITY. Exotics, which are typically the currencies of LESSER DEVELOPED COUNTRIES or NEWLY INDUSTRIALIZED COUNTRIES, are often nonconvertible and subject to partial or complete EXCHANGE CONTROLS. See also NONCONVERTIBLE CURRENCY, RESERVE CURRENCY.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.