Xenocurrency

A xenocurrency is currency deposited or exchanged in a country outside the country where the central bank issued it. The term “foreign currency” is more frequently used to describe currencies used in foreign jurisdictions.

For example, John lives and works in the United States. John travels to Panama for vacation and brings USD in cash. John purchases goods from a local market where the store owner accepts USD instead of Panamanian Balboa (PAB). John’s use of USD in a foreign country is xenocurrency or foreign currency.