Oh, the forbidden fruit.
An inconvertible currency is what it sounds like: a currency you can't convert. That is, a currency that’s been blocked via government intervention, or possibly physical reasons, creating a situation where you can’t exchange money to get that currency on foreign exchange markets.
For instance, if a currency suffers from hyperinflation to the point that it makes more sense to use it as toilet paper than to use it to buy toilet paper...then government regulators may make the currency inconvertible to prevent investors from...well, investing poorly.
While hyperinflation is the usual reason for this unusual situation, inconvertible currencies might also be a thing when a government is clamping down on control, either for domestic or international political reasons.
Don’t ask too many questions. You won't hear too many lies.
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Finance: What is a Dual Currency Bond?33 Views
Finance allah shmoop what is a dual currency bond Well
a currency duel would be way cooler to bonds One
dusty road in the wild west a saloon a gal
and a gun plan retired or called are paid whatever
they call bonds when they're dead Anyway a duel currency
bond is a bond where the principal and the interest
payments are made in different currencies like here's a bond
whose principal is paid off in u s dollars But
its interest is paid in euros and yeah whatever currency
being used for interest payments is called the base currency
Well why would you the investor of want one of
these things Well dual currency bonds or subject to exchange
rate risk In other words you're making a gamble not
just on an investment but on which way the exchange
rate will bounce That is if you own something it's
highly exposed two euros while then you're kind of making
a bet that the relative to the dollar the euro
zehr gonna appreciate mohr like the government's printing less of
them You have less inflation whatever because then if that
repayment currency appreciates well boom you're more in the money
Than just the interest you collected And if that currency
doesn't appreciate well there's always bank robbery is a last 00:01:21.189 --> [endTime] resort dual currency dueling currencies No
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