Inconvertibility

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Inconvertibility

The inability of a local currency to be exchanged for another currency. Often includes transfer risk.

Inconvertibility

The state in which a currency may not be exchanged for a foreign currency. A few socialist governments issue inconvertible currencies such as the Cuban peso in order to protect their citizens from perceived capitalist infiltration. Most of the time, however, domestic regulators may deem a foreign currency inconvertible in order to protect local investors from bad investment decisions. For example, regulators may deem a currency going through a period of hyperinflation as inconvertible; that way, investors do not make investments in that currency as they are likely to soon be worthless. See also: Foreign exchange.
References in periodicals archive ?
The tolerance for inconvertible currency released free banks from a heavy burden: paying on demand.
In Buenos Aires, the government printed large amounts of inconvertible paper money to finance increasing fiscal deficits.
Since the ringgit is now inconvertible overseas, all trade settlements will have to be made in foreign currencies.
The currency (Yuan) was made inconvertible and external trade was
There are other scientists like Shaubach, former skeptics who converted to the cold fusion cause after having been persuaded by what they claim is growing, inconvertible evidence.
Even if a currency is convertible in theory, the shortage of hard currency and the lack of effective markets may make it inconvertible in practice.
Only after the dollar had been declared inconvertible into gold, had been devalued in the Smithsonian Agreement, and still was under downward pressure in exchange markets, did U.
Its first commercial step will be to issue dollars 100 million inconvertible bonds (it has yet to appoint an underwriter), and later it will issue shares on the KSE, to attract Pakistani investment, although initially the consortium members themselves will be the largest shareholders.
Serious barriers remain on both sides-including an inconvertible ruble and United States restrictions on credit and technology transfer.
All but a few developed countries in the first sample had either imposed severe restrictions on international transactions or had inconvertible currencies during the early period.
The Chinese yuan is getting more attention today as an international currency but is still inconvertible on the capital account and, like many emerging market currencies, subsidiary to the dollar.
In the case of inconvertible currencies contracting the value "0PLN" (in words zero) per unit of currency nonremovable.