II Currency Convertibility
Author:
Mr. Guillermo Calvo https://isni.org/isni/0000000404811396 International Monetary Fund

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,
Mr. Eduardo Borensztein
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Mr. Paul R Masson
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Mr. Manmohan S. Kumar
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Abstract

Convertibility of domestic into foreign currencies is an extremely important aspect of the reform process for the PCPEs because it helps them to move to world market prices and thereby to become competitive. However, unrestricted convertibility is likely to take time to achieve; at least initially, convertibility is likely to be limited to current transactions. Requirements for convertibility and the desired speed of the transition are discussed in the following section.4

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