Blocked Currency

Some governments feel the need to restrict their currency to only be used within the country. If you are guessing that heavy-handed government-countries like Russia, China, North Korea, and Cuba block their currencies, uh...you are correct. They don’t want their citizens to be “corrupted” by capitalist influences.

You can’t exchange a blocked currency for another one on the foreign exchange market, so the only way you can trade it is on the black market.

There are other reasons a country might decide to block its currency. Angola decided to limit the amount of currency that could leave the country after oil prices there tanked. Others hope to prevent their currency from being devalued, or they don’t want too much capital to leave the local banks, especially from foreign investors with businesses there. They particularly don’t want to give unlimited access to foreigners.

So if you are planning a trip to Egypt, the Bahamas, Barbados, Brazil, or Cameroon, don’t plan on converting a lot of foreign currency until you get there.