When countries have hard, convertible currencies, they must pay for imports with soft inconvertible currencies earned from exports

Question

Quizplus · Accepted Answer

Countries with hard, convertible currencies can directly pay for imports with their own currency or other hard currencies, as these are widely accepted and easily exchanged on the global market. Soft, inconvertible currencies are typically not accepted for international transactions due to their limited convertibility.

When Countries Have Hard, Convertible Currencies, They Must Pay for Imports