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 currencies are restricted by a country’s government to protect its economy. These are often countries with volatile economies that don’t want to risk depleting their foreign currency reserves. So, they limit who can exchange their currency and control its value, keeping it insulated from global market forces.
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