Some countries around the world are not open economies. For a variety of reasons, their governments have decided that money shall not flow across their borders and all transactions for goods and services shall go through a formal government department. This protects the local economy which might easily be swamped by foreign suppliers and it also shelters the value of the local currency. Governments can buy essential goods and services on the international markets using their currency reserves, and then sell on the goods at a subsidized price to their citizens. You always know when you are going to such a country because you cannot convert your US dollars before you go. You can only convert when you land in the relevant country. Equally, you cannot take any of the local currency away with you. You must either spend all you convert on local goods and services, or you must buy back US dollars as you leave – often at an unfavorable exchange rate.

None of this should deter you from traveling to these countries. Indeed, such are the price advantages, you can enjoy much better accommodation, food and drink for lower prices than in the open countries. In fact, many of the really affordable of cheap air tickets packages including accommodation offered by travel agents take you to such countries. But you have to understand that there are often parallel economies in these countries where US dollars can be traded unofficially in cafes and hotels. There can also be opportunities to sell goods that are difficult to obtain in local shops. But before you get excited by the prospect of wheeling and dealing with your US dollars or selling on your jeans, be sure you know what they are worth in local currency. Otherwise, you can find yourself getting very poor value. Worse, you can be given counterfeit local currency so always know how to identify the local notes. Failure could mean you lose all those cheap air tickets savings as you get taken for a ride on local exchange rates and prices for imported goods.