convertible currency

(redirected from Freely Convertible Currency)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

convertible currency

a currency which can be converted into another currency without special permission from the FOREIGN EXCHANGE CONTROL authorities.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
As indicated on the website of the International Air Transport Association (IATA), passengers are allowed to carry up to LE 5,000, or $10,000 or the equivalent in freely convertible currency. A month earlier, a German woman and a Turkish man tried to get 11 kilograms of cocaine into the country.
Assets in freely convertible currency amounted to $15.74 billion, which was a decrease by 8.66 percent (13.77 percent since the beginning of the year).
It is worth noting that yuan is not a freely convertible currency as other major international currencies; therefore, Pakistan can largely use it in transactions with China.
For a net importer country such as Kenya, a strengthening currency may result in lower consumer prices while exporters feel the pinch as earnings in shillings dip."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.
Subsequently, it mushroomed from street vendors of sweets and confections sold in local currency to a growing presence of paladares that seat up to 12 customers, the maximum number permitted by the authorities, and usually direct their offerings to foreign tourists or to Cubans in freely convertible currency.
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.
They 'guarantee to investors of each contracting party freedom of transfer of payments relating to an investment in freely convertible currency'.