Currency Convertibility


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Currency Convertibility

 

conversion (exchange) of the currency of a particular country for foreign currency. The convertibility may be partial, with the currency of the particular country being exchangeable only for certain foreign currencies, or complete, with no limitations on exchange.

References in periodicals archive ?
A host country's breach of contract ranked second with about 45%, and currency convertibility restrictions ranked third with about 35%.
After unifying the dual exchange rates of the Chinese currency renminbi (RMB) and implementing a managed-float system on January 1, 1994, China formally committed itself to partial currency convertibility, that is, currency convertibility under the current account, in December 1996.
The guarantee will protect lenders against risks associated with currency convertibility and transferability and against premature termination of a 20-year power purchase agreement between the special purpose company and Corporacion Dominicana de Electricidad, the state utility," the IDB said;
Twenty years ago, when even advanced countries were suffering from double-digit inflation, when intrusive foreign exchange control was a source of major economic distortions and wide-spread corruption, to preach the virtues of price stability and currency convertibility was clearly to move the world in the right direction.
Editorial included information on joint venture law, currency convertibility, rules of corporate governance, labor and environmental regulations, company and commercial law, and changes in taxation.
Currency convertibility has been an important component of the conversion from plan to a market in other transition economies (McKinnon 1993).
I proceed comfortably to the concept of currency convertibility without monetary restrictions, was pleased with uses of convertibility, and readily agreed that the store of value was stronger in convertible holdings.
Currency boards, by eliminating monetary policy discretion and offering full currency convertibility, give developing countries a much stronger, more visible arrangement for promoting confidence in their money than do central banks.
In those cases where production must occur in the country where the project is taking place, you'd be wise to secure agreements for currency convertibility or exchange.
If we wish to stabilize the price level by (re-)establishing currency convertibility, we presumably need some other form of convertibility that has not yet been tried in practice.
The collapse of the Soviet Union's economy, coupled with limited hard currency convertibility for the ruble, eliminates the major Eastern European trading partner.