As previously explained, currencies are used for 1) domestic transactions, which the government has a monopoly in controlling (and hence can be carried out with fiat or even flimflam currencies) and 2) international transactions, in which case the currencies must be of real value or they won’t be accepted. The test of the real value of a currency is whether it is actively used and traded at the same exchange rate internationally as domestically. When there are capital controls that prevent the free exchange of a domestic currency internationally, that currency is more susceptible to being
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