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 Yankee Bond?36 Views
Finance allah shmoop what is a yankee bond We're safe
We're sound we're saying at least that's how we look
financially when you know the u s has compared with
most of the rest of the world that's why a
bunch of countries issue their own bonds denominated in u
s dollars you know countries like panama el salvador micronesia
and macron asia Well ours is ah hard currency and
that we don't or at least haven't historically created massive
ten percent a month inflation to deflate the value of
our own currency and well that would make it super
easy for our government to pay off its ludicrously high
death but we don't do that We respect the people
who loaned money to us including our own citizens So
we have a hard currency It just kind of stays
where it is Yes there's inflation Yes we raise the
rates a little bit here and there defended but generally
just kind of does its thing So we fight hard
to keep that trust that the rest of the world
often values more than well trust in their own governments
or at least their own government's ability to manage their
currency when they issue say argentinean bonds payable in u
s dollars Well then that's a yankee bond And we 00:01:14.819 --> [endTime] are the banker And well they are the yankee
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