The term currency may be referred to more than one thing. It may either be referred to a particular currency like for instance the US dollar, the British pounds, or it may be bank notes and coins of a particular currency, which constitutes part of the money supply of a nation. There are other things that make up the remaining part of a nation’s money supply which include bank deposits which can be transferred by using a cheque or a debit card.

When we talk about foreign currency, we are basically referring to bank notes and coins of other nations other than your own. For instance the US dollar is not a foreign currency to those residing in the United States because it is their nation’s currency. So for this reason the US dollar will be called a local currency for those who are living in the in the United States. On the other hand, the British pounds sterling, the Japanese yen, the German lira, the French francs and the European euro, are all foreign currencies simply because they constitute the legal tender of their respective countries. This means that each of these currencies is a foreign currency to the others.

We usually hear of fake currency. And if there is any thing like that then invariably there will also be fake foreign currency. A currency is used by individuals as a legal tender which allows you to transact business with another person or persons. This means that it is generally accepted as the medium of exchange and can be used to measure the value or worth of a commodity. This currency that is printed by the central bank alone is regarded as the authentic currency, while the currency printed from other sources are regarded as fake irrespective of how similar it can be with the authentic one.

People leaving one country to another are expected to make use of foreign currencies and by so doing they buy foreign currencies base on the exchange rate with the US dollar taken as the standard though it is not the strongest among others. Because there is that tendency for people to get rich quick, they engage in dubious act of printing currencies which may or may not resemble the authentic one. After printing, they look for any means of pushing it into circulation, whether through the banks as deposits or through individuals as change, grants, payments or offerings in churches.

Identifying fake foreign currency
Look and feel the currency whether it is similar to those already known to be authentic. If they feel and appear different then you have to suspect it. Know when a note is just old or dirty. Those that appear too shinny and either too light or heavy should be avoided. Also check the size of the currency.
Try to identify the security marks, threads, water marks, which are on every currency. These security marks will differ with the different foreign currencies.
Also try to identify the holograms because most currencies use is as security marks. These may change color or image when you tip the note forward or backwards.