[ELI5]What is closed currency in certain countries and what is the point ? how is it helping ?

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I live in one of these said countries, that means no online shopping or converting to another currency to have access to the rest of the world. But what does it do to improve things ? does it raise the value of the currency over time ? is it a temporary solution until a bigger plan gets put into place ? What’s in the future in this situation ?

In: Economics

Anonymous 0 Comments

A closed currency means a country restricts its money from being exchanged with other currencies to control its economy. This helps prevent inflation, stops money from leaving the country, and encourages people to buy local products. It doesn’t necessarily make the currency more valuable and can be either a temporary or long-term measure, depending on how well the economy improves.