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 ?
at the end of it had a "depreciated inconvertible greenback currency, and a heavy burden of public debt" (2005: p.
Although the discount rates and the price of exchange were high, people hardly felt the harm of inconvertible currencies.
In the second case, the cross-section remains inconvertible and collapsing starts in the finite set of points or regions.
The simultaneous yet paradoxical status of blues as inconvertible evidence of the black genius and, according to George, as an antiquarian curiosity that is mainly the subject of interest for white traditionalists, bears examination.
Beside the CFA Zone and the Rand Zone, most African countries have an inconvertible currency.
It unfolds in its own dimension: depth, which is inconvertible into the breadth and length in which the side of the element extends" (TI:131).
Primero fue un titulo y despues papel moneda inconvertible emitido en Francia por el poder revolucionario, entre 1789 y 1796, con el respaldo de los Bienes Nacionales expropiados, tambien servia para su adquisicion.
Primero titulo y luego papel moneda inconvertible emitidos en Francia por el poder revolucionario, entre 1789 y 1796, con el respaldo de los Bienes Nacionales expropiados y sirviendo igualmente para su adquisicion.
Nosotros empleados a jornal, nosotros que experimentamos con mas fuerza que nadie las violentas sacudidas de ese arbol sin raices que se llama cambio internacional; nosotros que desde hace veinticinco anos venimos aprendiendo en cabeza propia los inconvenientes del billete inconvertible, nos apresuramos ahora que se trata de remediar en parte tan precaria situacion, a expresar a S.
20) These IOUs were inconvertible and also circulated widely in the region (Prebisch 1921, 199).
An inconvertible currency that interfered with international trade and restricted the importation of overseas technology
China's FX market has developed under an institutional framework involving a compulsory FX purchase and sales system, a de facto pegged exchange rate and inconvertible RMB under the capital account.