I fully understand how currencies are pegged at a certain rate, but transact at a different rate. I cannot wrap my head around currencies that can’t be converted. It makes no sense to me.
In: Economics
Non-convertible just means you can’t trade the currency on the open market. You have to use a government controlled conversion*
Sometimes the restriction is self imposed (chile) sometimes it’s outside nations that don’t allow the currency on the exchanges (North Korea)
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