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non-convertible currency

A non-convertible currency is the monetary unit of a country where holders of the currency do not have the right to convert it freely at the going exchange rate into any other currency. A currency is considered as non-convertible if it fulfills one or more of the following three criteria about usability, exchangeability and market value:

it cannot be used for all purposes without restrictions;

it cannot be exchanged for another currency without limitations;

It cannot be exchanged at a given exchange rate.