The different kinds of foreign currencies that there are in the world are called according to their particular characteristics. Previously we have mentioned that the word foreign currency is not the same as currency, as foreign currency contemplates also the differents ways with which nations do their commercial transactions.
The definition of the different kinds of foreign currencies has to do with the operation that can be done with it. For example, the bilateral foreign currency is used in the liquidation of the operation between countries that have had bilateral arrangements.
Other kind of foreign currencies that there are is the convertible foreign currency, that as its name says, it can be exchanged with others.
There is also an exotic foreign currency, a not very popular foreign currency at the market because of its little marketing. And finally this is the kind of foreign currency that is called strong, that is the one that has certain exchange stability and that generally includes countries with low inflation. A foreign currency is strong if it represents a strong economy.