Convertibility

Commitment by a central bank to exchange foreign payment instruments offered to it into its monopoly money (central bank money; base money) at the exchange rate of the day. Convertibility thus means that a currency is free from foreign exchange limitations in international payment transactions. – At the ECB, also referred to as the possibility of converting financial instruments into cash – see cash deposit, foreign exchange constraints.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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