What is an “exotic” currency pair?

Exotic currency pairs represent developing countries as well as several developed European countries and are traded less frequently. The group of exotic currencies was formed by the means of the International Monetary Fund. Exotic currency pairs are usually highly volatile and are lacking liquidity. Note that this results in a higher cost of trading and abnormal price movements.

Examples for exotic currency pairs

US-Dollar/Brasilian Real (USD/BRL)
US-Dollar/South African Rand (USD/ZAR)
Euro/Swedish Krona (EUR/SEK)
Singapore Dollar/Japanese Yen (SGD/JPY)

and many more…

A list of exotic forex rates, we can see here

Major Forex Pairs
Minor Forex Pairs

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