However, despite the CBU's commitment to currency convertibility
, some problems still exist.
(2) Breaking the dollar peg institutionalized in convertibility
would have allowed the exchange rate to adjust--but at the cost of bankrupting many firms and the government, since the peso value of their dollar debts would balloon.
plan allowed the use of either US dollars or Argentine pesos in any transactions except wage and tax payments.
This article investigates the impact of currency convertibility
under the current account on the informational linkage between official and swap market exchange rates for Chinese currency (renminbi).
Currently, officials say there are no plans to change the Convertibility
Law that established the current system.
A money laundering scandal has undermined the credibility of Central Bank president Pedro Pou, which is disturbing because the CB is viewed by many as the main guardian of the Convertibility
Law that pegs the peso solidly to the US dollar.
Whether there is convertibility
into the stock of the corporation and
As a result, the system established after WW II was designed to restore "convertibility
," or the ability to trade foreign exchange freely.
"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.
The industry has been helped by economic stability brought by the 1991 "convertibility
" plan, which pegs the Peso 1-to-1 against the dollar.
of these currencies with the French Franc (at a fixed parity) is guaranteed by the French Treasury.
Thus, prices were quoted in the two currencies until Congress legislated a phased convertibility
, which was completed in 1879.