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blocked currency

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Financial Dictionary

Blocked Currency

Any currency that is mainly used for domestic transactions and does not freely trade on a forex market (usually due to government restrictions). Also referred to as a "nonconvertible currency".

Investopedia Commentary

It is very difficult (if not impossible) to convert the blocked currency into a freely traded one such as the U.S. dollar.

Related Links

A Primer On The Forex Market
Getting Started In Forex
Floating And Fixed Exchange Rates

See also: Currency, Dirty Float, Floating Exchange Rate, Forex

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