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The domestic currency is that which is legal tender in the economy and issued by the monetary authority for that economy, or for the common currency area to which the economy belongs.

Legal tender issued by the monetary authority of a country. The domestic currency is the accepted form of money in the economy, but not necessarily the exclusive currency. Opposite of foreign currency.

A currency printed in a different country. Generally speaking, a foreign currency may not be used to buy goods and services in any country other than the one in which it is printed, unless the government of that country agrees to use it.

In a currency pair, the first currency is called the base currency, and the second is called the quote currency. Currency pairs can also be separated into two types, direct and indirect. In a direct quote, the domestic currency is the base currency, while the foreign currency is the quote currency. An indirect quote is just the opposite: the foreign currency is the base currency, and the domestic currency is the quote currency.