Local currency refers to the legal tender of a country, and no other currency can circulate in this country except legal tender. For example, the only legal tender in Chinese mainland is RMB, so we also call RMB local currency at this time, but this concept is mostly used in the foreign exchange market.

Foreign currency is the abbreviation of "foreign currency", which refers to the currency of other countries or regions other than domestic currency. It is often used for foreign settlement business caused by trade, investment and other economic activities. Foreign currency refers to another currency used in the official currency area or a payment request made in another currency.