An Exotic Currency is one of the groups of world currencies that are not commonly traded.
While the currency market or Forex market is the largest, most heavily traded, and deepest market in the trading universe, the Bank of International Settlements (BIS) http://www.bis.org/ reports that the majority of the trading in USD terms is trading in the Great British Pound, GBP; the Euro, EUR; the United States Dollar, USD; and the Japanese Yen, JPY. The remainders of most Forex trades are with what are known as the Euro Proxies (Swiss Franc, CHF; the Norway Kroner, NOK; and the Swedish Kroner, SEK) and the Minors (Australian Dollar, AUD; New Zealand Dollar, NZD; Canadian Dollar, CAD; etc.) The currencies with the least amount of volume in dollar terms are the Exotics. This group includes the currencies of developing economies such as the HUF, CZK, and PLN.