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Exotic Currency Pair Definition

An exotic currency pair combines a major currency with the currency of a smaller or emerging market economy.

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What is an Exotic Currency Pair?

Exotic pairs typically have lower liquidity and wider spreads compared with major currency pairs.

They can also be more volatile due to lower trading volume and higher sensitivity to local economic events.

Example of Exotic Currency Pair

USD/TRY and USD/ZAR are examples of exotic currency pairs.

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