Blocked Currency


DEFINITION of '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".

BREAKING DOWN 'Blocked Currency'

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

  1. Blocked Account

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  2. Floating Exchange Rate

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  3. Currency

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  4. Dirty Float

    A system of floating exchange rates in which the government or ...
  5. Exchange Control

    Types of controls that governments put in place to ban or restrict ...
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    The market in which currencies are traded. The forex market is ...
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