Non-Convertible Currency
Non-convertible (inconvertible) currency is any nation's legal tender that is not freely traded on the global foreign exchange market.
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One of the main reasons that a nation chooses to make its currency into a non-convertible currency is to prevent a flight of capital to offshore destinations. Non-convertibility can be used to protect a country's currency from experiencing unwelcome volatility. It's especially advantageous if a country's economy is unduly vulnerable to market movements.
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