Gold doubloons. Quatloos. Kalganids. Exotic currencies.
The term refers to currencies that don't see much trading volume on international markets. As a result, they can lack liquidity, which can lead to relatively large swings in value.
The major world currencies include the U.S. dollar, the euro, the Japanese yen, the British pound and the Swiss franc. These represent the furthest thing from exotic currencies. They are the boring currencies...the steak and potatoes of forex trading.
Below those big shots, there's a tier of currencies of smaller countries that still have relatively developed economies and strong financial/monetary institutions. This group includes players like the Canadian dollar, the Australian dollar and the New Zealand dollar.
From there, things start to get exotic. The next tier includes currencies like the South African rand, the Turkish lira, the Hong Kong dollar, the Singapore dollar, and the money used in the various Scandinavian countries...Sweden, Norway, and Denmark (their currencies are known as the krone and the krona, depending on location).
Meanwhile, at the way, way furthest end of the exotic spectrum are the really thinly-traded currencies...only really of interest to people traveling to those locations, or traders with insider knowledge or gambling addictions. We're talking things like the Afghan afghani, the Bahraini dinar, or the Somali shilling.
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Finance: What is a Dual Currency Bond?33 Views
Finance allah shmoop what is a dual currency bond Well
a currency duel would be way cooler to bonds One
dusty road in the wild west a saloon a gal
and a gun plan retired or called are paid whatever
they call bonds when they're dead Anyway a duel currency
bond is a bond where the principal and the interest
payments are made in different currencies like here's a bond
whose principal is paid off in u s dollars But
its interest is paid in euros and yeah whatever currency
being used for interest payments is called the base currency
Well why would you the investor of want one of
these things Well dual currency bonds or subject to exchange
rate risk In other words you're making a gamble not
just on an investment but on which way the exchange
rate will bounce That is if you own something it's
highly exposed two euros while then you're kind of making
a bet that the relative to the dollar the euro
zehr gonna appreciate mohr like the government's printing less of
them You have less inflation whatever because then if that
repayment currency appreciates well boom you're more in the money
Than just the interest you collected And if that currency
doesn't appreciate well there's always bank robbery is a last 00:01:21.189 --> [endTime] resort dual currency dueling currencies No
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