"Full convertibility does not necessarily and should not mean total freedom to convert without, for example, the need to seek approval from any authority or to report".Essentially, he suggested that China would relax its capital controls but retain the option of reimposing them as needed the very essence of gated globalisation.
Argentina, by contrast, had to contend with the strictures of its convertibility law and a largely unreformed regulatory framework.
The euro floats against other currencies such as the dollar, and the ECB is obliged to maintain price stability rather than convertibility into gold.
The government has promised convertibility of the yuan and interest-rate liberalisation within the area, as it experiments with economic reforms.
In 1971 Richard Nixon sought to solve the mounting crisis of a large trade deficit and a costly war in Vietnam by suspending the dollar's convertibility into gold.
But they also fear the upward pressure on the value of the yuan that a looser exchange-rate regime and full convertibility imply.So one theme of the debate covered in the report is how internationalisation can be achieved without liberalisation.
Convertibility pegs the peso to the dollar at par and limits the money supply to the level of hard-currency reserves.
Mr Singh said he had asked the RBI to "revisit" the issue of full convertibility of the rupee.
Secondly, limits on the zloty's international convertibility inhibit speculators from attacking the currency; foreign investors are not permitted to borrow zlotys from Polish banks, making it hard for them to bet against the zloty.
He has promised fiscal austerity and to maintain "convertibility", the Argentine name for the rigid currency-board arrangement which pegs the exchange rate by law.
All this came to a halt in 1991, when Argentina adopted its "convertibility" plan to fix the peso against the dollar, the equivalent of Italy's decision to join the euro in 1998.
