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What is a restricted currency?

Updated: 10/19/2022
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12y ago

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A restricted currency is a currency that have limits of how much money you are allowed to bring in or take out of that country, this in order to prevent capital flight and ensure that there won't be any shortage of local currency.

Currencies is also a common trading object in the financial markets. Trading with restricted currencies can therefore be a problem, hence only a custodian or their sub-custodian are allowed to do trades.

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