Nonconvertible Currency

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Nonconvertible Currency

A currency that may not be converted into another currency on the foreign exchange market, or that may be converted only in limited amounts. Some countries limit convertibility to prevent citizens from making bad investment decisions in, say, a country experiencing hyperinflation, while a few communist countries issue nonconvertible currencies to protect their citizens from capitalist influences. A nonconvertible currency is generally traded only on the black market. It is also called a blocked currency or an inconvertible currency.
References in periodicals archive ?
In this installment of Executive Session, sponsored by The NonProfit Times and the United Way of America, the finance gurus discussed everything from blocked currencies to stymied investment committees.
It's a risky situation, but it will also give us avenues for some of our blocked currencies as investment vehicles.