Xenocurrency is a currency that can be exchanged in markets outside of its local borders.
For example xamples: Use of the Indian rupee in the United States or the Japanese yen deposited into a European bank.
The word ‘Xeno’ means foreign in Greek language.
In modern times, utilization of the expression is inconsistent, maybe because of some degree of negative undertone of "Xeno."
Xenophobia, for instance, implies a silly fear or contempt of foreigners. Foreign currency, along these lines, has become the favored expression while referring to a non-domestic currency.
The U.S. Dollar (USD) is frequently utilized as a xenocurrency in Mexico, particularly for enormous transactions in land and other business activities.
The term xenocurrency was created in the year 1974 by an economist Fritz Machlup. He also served as the leader of the International Economic Association from the years 1971 to 1974.
Machlup used the expression to allude to the deposits and loans denominated in currencies other than that of the nation where the bank is a resident.
Xenocurrency investments are prone to risk, since they are complicated by numerous elements, that include fluctuations and conversion issues.
For example, after the United States pulled back from the Iran nuclear deal in May 2018, the Iranian rial plunged to a record low against the U.S. dollar.