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Financial instruments may be denominated in foreign currencies that are freely convertible to U.S. dollars.
During the 19th century the dollar was freely convertible into gold — except when it wasn't.
It still faces hurdles, however, such as a Chinese currency that is not freely convertible.
Currencies were not freely convertible, and imports were subject to licences and quotas.
Currencies were freely convertible into gold, which in effect was a common international money.
The ruble will not be freely convertible to Western currencies for years, Mr. Abalkin said.
Similar(14)
Your social security check will never bounce in a country issuing debt in its own freely floating non-convertible currency.
That is not going to happen in the foreseeable future, and not before China has developed a modern legal system and its currency is fully convertible and freely traded.
A convertible currency, or one that can be freely bought and sold for other currencies, would make it easier for foreign investors to do business here and allow Chinese companies to raise money abroad.
Nancy is also able to travel freely about the United States, thanks to her car, which in most books is a blue convertible.
Western currencies like the American dollar or the West German mark are all hard, or convertible, meaning that their value is determined by market forces and they can be freely exchanged for other currencies at prevailing market rates.
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