Currency Convertibility: Indian and Global Experiences

Currency convertibility, as an aspect of a country's exchange rate policy, refers to the ease with which domestic currency can be traded for foreign currency, for a particular usage, and at a given exchange rate. Currency convertibility policy of a government has two aspects - current account convertibility and capital account convertibility. Current account convertibility allows residents to make and receive trade-related payments - receiving foreign currency for export of goods and services an…