A currency corridor is a payment corridor described by the two currencies that are exchanged, for example US dollars to Philippine pesos or euros to Nigerian naira. A payment corridor is normally defined by its sending and receiving countries; naming it by currency shifts attention to the foreign exchange side of the route: how the conversion is priced, where liquidity comes from and how settlement is funded.
The two descriptions do not always coincide. Several countries share one currency, as in the euro area, so a single currency corridor can cover many country routes. One country route can also involve more than one currency, for instance where recipients may be paid in either local currency or dollars. The term is close to currency pair, but a pair is a market quotation, while a corridor implies an operating service with licenses, bank accounts and payout arrangements at both ends.
Payment companies assess each corridor by volume, by the liquidity of the currency market and by any exchange controls. Routes into an exotic currency are costlier to serve because spreads are wide and funds must often be placed in advance. The main entry, and the related page on the remittance corridor, cover pricing, partners and regulation in detail.