inconvertible currency
irredeemable currency

There are high costs, delays and an inconvertible currency.

This is a penalty that Yugoslavia pays for the large share of its foreign trade which it carries on with countries having inconvertible currencies.

Thus, it is an illusion that any physically inconvertible currency is necessarily also unbacked.

While an inconvertible currency creates inefficiency since Government bureaucrats ultimately decide who has access to foreign cash, the cowboy capitalist ethic of financial markets in developing countries creates equally important inefficiencies.

The creation of congressionally authorized irredeemable currency by the Second Bank of the United States amounted to taxation by inflation.

Irredeemable Currency: The Destroyer of Capital (Monograph, Committee for Monetary Research and Education, 1985)

In 1816, the Second Bank of the United States was chartered by the U.S. Congress for a twenty-year period to create irredeemable currency with which to pay for the costs of the War of 1812.

The standards of the accounting profession have long since been compromised by the regime of irredeemable currency in this country, setting the value of goods and chattel as well as the value of real estate and deferred payments adrift.