Nations with soft, inconvertible currencies often import more than they export and in so doing build up hard currency debts

Question

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Nations with soft, inconvertible currencies tend to import more than they export because their currencies are not readily accepted for international transactions. To facilitate these imports, they must use hard currencies (like the US dollar or Euro), which are globally accepted. This process can lead to the accumulation of hard currency debts as these nations need to borrow or earn hard currency to pay for their imports.

Nations with Soft, Inconvertible Currencies Often Import More Than They