Labeling a currency as inconvertible allows regulators to protect investors from storing funds in an unsafe investment. For example, if a nation were to begin experiencing hyperinflation, where the value of a unit of currency rapidly depreciates, its currency could be deemed inconvertible. This would prevent investors from converting funds into the unstable currency.
Investment dictionary. Academic. 2012.
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inconvertible currency — UK US noun [C] ► ECONOMICS a currency that cannot be changed into another: »The two clans ran the province with iron fists, even controlling the economy by issuing their own inconvertible currency … Financial and business terms
inconvertible currency — A currency that cannot be legally converted into other currencies. It is often the case that currencies are inconvertible for certain purposes, such as overseas investment. Currencies are most likely to be inconvertible where the underlying… … Big dictionary of business and management
currency — money. Bloomberg Financial Dictionary The currency that the security is traded in. London Stock Exchange Glossary * * * currency cur‧ren‧cy [ˈkʌrənsi ǁ ˈkɜːr ] written abbreviation cur noun currencies PLURALFORM … Financial and business terms
Currency — Money. The New York Times Financial Glossary * * * currency cur‧ren‧cy [ˈkʌrənsi ǁ ˈkɜːr ] written abbreviation cur noun currencies PLURALFORM FINANCE 1. [counta … Financial and business terms
inconvertible — UK US /ˌɪnkənˈvɜːtɪbl/ adjective ► ECONOMICS unable to be changed into gold, another currency, or another type of investment: »A large part of this amount was locked up in inconvertible securities … Financial and business terms
Currency of Colombia — Contents 1 Spanish colonial coinage 1.1 1622–1756 Cob coinage (macuquina) 1.2 1756–1822 Milled coinage 1.3 1813–1820 Necessity coinage … Wikipedia
Currency of Uruguay — This is an outline of Uruguay s monetary history. For the present currency of Uruguay, see Uruguayan peso. Contents 1 Pre independence currency 2 1828–1854 Peso 2.1 History 2.2 Paper … Wikipedia
Currency Convertibility — The ease with which a country s currency can be converted into gold or another currency. Convertibility is extremely important for international commerce. When a currency in inconvertible, it poses a risk and barrier to trade with foreigners who… … Investment dictionary
inconvertible — adj. 1 not convertible. 2 (esp. of currency) not convertible into another form on demand. Derivatives: inconvertibility n. inconvertibly adv. Etymology: F inconvertible or LL inconvertibilis (as IN (1), CONVERTIBLE) … Useful english dictionary
inconvertible — adjective Etymology: probably from Late Latin inconvertibilis, from Latin in + convertibilis convertible Date: 1646 not convertible: as a. of paper money not exchangeable for coin b. of a currency not exchangeable for a foreign currency •… … New Collegiate Dictionary