The Law Dictionary

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CONVERTIBLE CURRENCY Definition & Legal Meaning

Definition & Citations:

A currency that can be freely exchanged into another currency for any purpose, without regulatory restrictions. Convertible currencies are generally associated with open and stable economies, and their prices are typically determined through supply and demand forces in the FOREIGN EXCHANGE market. Also known as HARD CURRENCY. See also CONVERTIBILITY, EXOTIC CURRENCY, NONCONVERTIBLE CURRENCY, RESERVE CURRENCY.


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