DEFINITION of ‘Xenocurrency’
A currency that trades in markets outside of its domestic borders. The term “xenocurrency” is derived from the prefix “xeno,” which literally means foreign or strange.
BREAKING DOWN ‘Xenocurrency’
An example of a xenocurrency would be the euro traded in the United States, or the Japanese yen traded in Europe. The term “xenocurrency” is seldom used in markets, perhaps because of the somewhat negative connotation of the word “xeno.” Xenophobia, for example, means an irrational fear or hatred of foreigners. “Foreign currency,” therefore, is the preferred term when referring to a non-domestic currency.