Topic: Currency relations, balance of payments and its deficit. International trade

Partially convertible central banks control international investments flowing in and out of the country, while most domestic trade transactions are handled without any special requirements, there are significant restrictions on international investing and special approval is often required in order convert into other currencies. The Indian rupee and Renminbi are examples of a partially convertible currency.

Nonconvertible Neither participate in the international FOREX market nor allow conversion of these currencies by individuals or companies. As a result, these currencies are know as blocked currencies. E.g.: North Korean won and Cuban peso.