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.