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Argentina will "maintain convertibility, will maintain foreign exchange parity," he said.
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.
But when Buenos Aires' economy began to reel from International Monetary Fund-imposed taxes, markets began doubting Argentina's willingness to maintain convertibility.
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The United States, even after its entry into the war, maintained convertibility but embargoed gold exports.
But when the United States ran large deficits, doubts arose regarding the ability of the United States to maintain the convertibility of the dollar into gold.
Throughout the nineties, Argentina had maintained a convertibility programme which tied the peso at a 1 1 rate to the US dollar.
A country maintains the "convertibility" of its currency by standing ready to buy and sell gold or other currencies in exchange for its own at prices within a fixed and rather narrow "spread" above or below the "exchange rate" for its own currency that is implied by the declared parity.
All had maintained full convertibility into their anchor currencies.
The euro floats against other currencies such as the dollar, and the ECB is obliged to maintain price stability rather than convertibility into gold.
Further, the central bank (or equivalent in those days) had to maintain stores of gold sufficient to back the circulating currency (at the agreed convertibility rate).
Forage convertibility: defer.add img); This determines whether a bovine is an "easy-keeper" when fed a roughage/grass-only diet and will increase or maintain weight on such a diet, or is a "hard-doer" and consistently looses weight on the same diet as a "easy-keeper" would.
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