convertible currency

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Convertible Currency

A currency that may be exchanged for a foreign currency. Currency convertibility is vitally important in the foreign exchange market; higher convertibility means that a currency is more liquid and, therefore, less difficult to trade. Factors affecting convertibility include the availability of foreign currency reserves in a given country and domestic regulations seeking to protect local investors from bad investment decisions in, for example, a currency undergoing a period of hyperinflation. A few socialist governments even issue inconvertible currencies, such as the Cuban peso, in order to protect their citizens from perceived capitalist infiltration. See also: Inconvertibility.

convertible currency

a currency which can be converted into another currency without special permission from the FOREIGN EXCHANGE CONTROL authorities.
References in periodicals archive ?
Also, according to the President, the law allows non-resident buyers to pay for acquired privatization objects not only in Ukrainian hryvnia, but also in freely convertible currency.
The Central Bank of Kenya's FX operations are simply off the charts, especially when you consider we have a freely convertible currency which is something of a rarity in SSA these days," Mr Satchu said.
In Bahrain, with the freely convertible currency and connections it's easy to see why the Kingdom is providing such a hotbed of activity for fraudsters.
At present time the ratio of the national currency against the freely convertible currency amounts to: 3,50 manats = 1 US dollar.
The MDB Conditions amend this sub-clause to allow for the Performance Security to be denominated in a freely convertible currency acceptable to the Employer, rather than restricting the same to the currency of the contract.
Bahrain has a more liberal economy, it's competitive, value-oriented, has the lowest tax, 100pc ownership in business and real estate and has a freely convertible currency.
Bahrain has a more liberal economy, it's competitive, value-oriented, has the lowest tax, 100 per cent ownership in business and real estate and has a freely convertible currency.
The amount to be invested by a foreign investor is at least $500,000 or the equivalent in any freely convertible currency deposited in the Bank of South Sudan," reads the Act.
But these assignments may not be quite as attractive because cash flows may not be in a freely convertible currency and could be subject to significant exchange risk.
A Bid Security of EURO 25,000 (twenty five thousand), or its equivalent in a freely convertible currency
Before joining the EU, Finland concluded bilateral investment treaties with the Russian Federation, Belarus, China, Malaysia, Sri Lanka and Uzbekistan, guaranteeing to investors of each party freedom of transfer of payments relating to an investment in freely convertible currency.
b) For payment in a freely convertible currency from abroad:Payment in a freely convertible currency will be done through intermediary bank LHB International Bank AG Frankfurt AM Main SWIFT code: LHBIDEFF, account with institution /000 9867 300 Intesa SanPaolo Bank d.