Nonconvertible Currency

外汇网2021-06-19 13:42:27 150

Any currency that is used primarily for domestic transactions and is not openly traded on a forex market. This usually is a result of government restrictions, which pvent it from being exchanged for foreign currencies.

Also known as a "blocked currency".

|||As the name implies, it is virtually impossible to convert a nonconvertible currency into other legal tender, except in limited amounts on the black market. When a nation's currency is nonconvertible it tends to limit the country's participation in international trade as well as distort its balance of trade.

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