0
it means that any domestic or foreign agent can convert its domestic currency to a foreign currency at an official exchange rate in order to complete the current account transaction. current account transaction involves the purchase and sell of visibles and invisibles like goods & services.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
How is the conversion between foreign currency regulated?
Governments and banks determine the convertibility of currency. Depending on the country, currency may be fully or partially convertible. In several countries, currency is nonconvertible.
How did religion contribute to changes in Bosnia and Poland?
Challenges were macroeconomic stabilization, radical liberalization, currency convertibility, conversion state-ownedenterprises.
What has the author Helmut W Mayer written?
Helmut W. Mayer has written: 'Official intervention in the exchange markets: stabilising or destabilising?' -- subject(s): Currency convertibility, Foreign exchange, International finance 'The anatomy of official exchange-rate intervention systems' -- subject(s): Currency convertibility, Foreign exchange, International finance 'Official intervention in the exchange markets' 'Some theoretical problems relating to the Euro-dollarmarket'
What has the author Carlos A Carbone written?
Carlos A. Carbone has written: 'Corralito financiero' -- subject(s): Amparo (Writ), Bank deposits, Cases, Currency convertibility, Financial crises, Law and legislation
When did the US abandon its maintenance of the dollars convertibility?
The United States ultimately could not maintain the dollar's promised convertibility, ending it in 1971.
What is the difference between softcurrency and hardcurrency?
It USED to be the comparison between paper money and metal money.Now it's just a reference to the assumed stability of two soft currencies. Note A hard currency is freely convertible into other currencies, but a soft currency is hedged about with restrictions on its conversion into other currencies. In some cases a soft currency may be a purely internal currency with no or almost no convertibility.
Why was the US forced to abandon its promise to maintain the dollars convertibility?
The US could not maintain the dollar's convertibility because of inflation and a subsequent run on the U.S. gold reserve.
Does convertibility of rupee encourages adverse balance of payment?
yes
What is current account convertibility?
Current account convertibility means freedom to buy or sell foreign exchange for the entire trade purposes.(Eg: buying and selling of goods,interest payments etc...)
How long will Fiat currency last?
No one knows for sure how long the fiat currency will last. The average life expectancy for a fiat currency is 27 years. The shortest time was one month and the longest is the British pound Sterling at 317 years. Every 30 to 40 years the reigning monetary system fails and has to be retooled. The last time around for the U.S. was in 1971, when Nixon cancelled the convertibility of dollars into gold.
What treaty ended the Great Depression?
No treaty started or ended the Great Depression. The depression years were an economic event that worsened with the world's rigid adherence to the gold standard behind major currencies. Its devastating effects began to soften and disappear with the worldwide devaluations of currency in terms of its backing by gold. In fact, during the depression years, every major currency abandoned convertibility to gold.
Impact of rupee convertibility in financial integration?
The SDR (Special Drawing Right) is an artificial "basket" currency used by the IMF (International Monetary Fund) for internal accounting purposes. It is an international reserve asset of IMF to alleviate the problem of international liquidity. The SDR is also used by some countries as a peg for their own currency, and is used as an international reserve asset. Ivan Menezes MBA M.G. Univ
