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  • 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...)
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13y ago

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What is Partial convertibility of currency?

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.


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An advantage is that is encourages short-term investments from foreigners. A disadvantage is that may take away investments from Indian companies.


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The two important characteristics of current assets are liquidity and convertibility. Liquidity refers to how quickly and easily an asset can be converted into cash without significantly affecting its value, while convertibility indicates the ease with which these assets can be transformed into cash or cash equivalents, typically within one year. Together, these characteristics ensure that a company can meet its short-term financial obligations.


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What is current account deficite?

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What is the difference between A current account and a cheque account?

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What is the different between cash credit account and current account?

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Why was the US forced to abandon its promise to maintain the dollars convertibility?

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