What is Currency Convertibility?

Currency convertibility refers to the right of a currency holder of one country to convert the currency it holds into another country's currency at market exchange rates for any purpose. ^[1]

Currency convertible

Right!

Currency convertibility means that a currency holder of a country can

Currency convertible includes

Internal convertibility and external convertibility

Internal convertibility means that residents can freely hold in the country

The core issue of currency convertibility is the right of currency conversion. Currency conversion rights are unlimited. The right to currency conversion is a right guaranteed by relevant state laws.

The stage to achieve full currency conversion

Non-freely convertible currency (Economic and Asset Management)

Conditional convertibility of current account (limited management, asset control)

Freely convertible current account (regardless of asset control)

Conditional convertibility of capital and financial accounts (regardless of, limited asset management)

Fully freely convertible (regardless of business and capital) Internationalization of currencies