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 the case of inconvertible currencies contracting the value "0 PLN" (in words zero) per unit of currency nonremovable.
Thus, Friedman's expectation--that such stable "monetary experience" under different forms of the gold standard and fixed exchange rates would "characterize our future"--could not survive his successful campaign to destroy the attenuated vestiges of the true gold standard incorporated in the Bretton Woods gold-exchange standard, inaugurating the era of inconvertible currencies and floating exchange rates (1971-present), associated as it has been with increased monetary and economic instability.
Although the discount rates and the price of exchange were high, people hardly felt the harm of inconvertible currencies.
The December edition with his article on poverty in London, visas, beauty and the beast, and inconvertible currencies, seriously questions his intelligence.
A US area, with the dollar at a fixed rate, an enlarged sterling area with floating convertible currencies based around sterling, and the rest with fixed inconvertible currencies.