Blocked currency


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Blocked currency

A currency that is not freely convertible to other currencies due to exchange controls.

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 ?
So the only thing I can see - and, again, it's theoretical because the Renminbi is a blocked currency - would be the Renminbi in 20 years.