Nonconvertible Currency

(redirected from Non-Convertible Currency)

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 ?
When sanctions hit, Iran agreed to accept 45 percent of the payments for its oil in rupees, a non-convertible currency that is useless outside India and that began stacking up in Iranian accounts in India.
Further, Hong Kong cannot use a non-convertible currency to back up its monetary base, which is fully convertible to the U.
However, he stressed Beijing would implement a reform in the exchange rate regime of its non-convertible currency which would lead to a gradual rise.
She said China also benefited from a non-convertible currency "that has worked well.
Statesmen and bankers navigated a new world of non-convertible currency, protecting Britain, weathering increased risks and disruptions, and financing an unprecedented share of international trade.
Any government with its own non-convertible currency with a floating exchange rate that spends and borrows strictly in its own currency cannot become insolvent.
Since the rial is a non-convertible currency internationally and since its value has eroded ever since the revolution (when a dollar sold for about 70 rials), there are few international institutions believed to have any interest in working in the rial.
Since the rial is a non-convertible currency internationally and since its value has eroded constantly since the revolution, there are few institutions believed to have any interest in working in the rial.

Full browser ?