convertible currency

convertible currency definition - finance
A currency that can be exchanged for another currency. Some governments may place limits on the convertibility of their currencies. In order to be actively traded, a currency must be convertible. The U.S. dollar is an example of a currency that is fully convertible.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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