Which countries in the world have freely convertible currencies?

Dollar, Deutsche Mark, Japanese yen, British pound, Swiss franc, French franc, Italian lira, Dutch guilder, Belgian franc, Danish krona, Swedish krona, Norwegian krona, Austrian shilling, Hong Kong dollar, Canadian dollar, Australian dollar, New Zealand dollar, Singapore dollar, etc.

A freely convertible currency refers to a currency that has no restrictions or regulatory requirements on import, export, exchange and cross-border lending. Sixty-seven countries in the world have accepted the terms of the International Monetary Fund's agreement on currency convertibility.

According to the agreement of the International Monetary Fund, a freely convertible currency must meet the following three conditions:

(1) There is no need to restrict the payment and fund transfer of frequent international contacts. In other words, this currency can be used as a means of payment unconditionally at any time in frequent international exchanges, and the other party should unconditionally accept and recognize its legal value.

② Do not implement discriminatory monetary measures or multiple exchange rates.

(3) At the request of another member state, it is always obliged to exchange the other party's own currency in regular exchanges. That is, the member countries participating in the agreement are obliged to accept their own currencies unconditionally. After years of hard work, China will soon become one of the freely convertible countries.

There are still many arguments about the nature of money in academic circles. There are various concepts of money in economics. At first, it was defined by the function of money, and later it was defined as economic variable or policy variable.

The latest monetary theory holds that money is a contract between property owners and the market about exchange rights, and it is essentially an agreement between owners.

Money is the agreement of this process. This theory can withstand strict falsification and logical argumentation, explains all economic phenomena related to money, and has been tested by all economic practices, thus ending the debate about the nature of money for hundreds of years.

Extended data:

Currency convertibility can be traced back to the exchange relationship between various metal currencies in the early days, but it is traditionally believed that currency convertibility originated from the gold standard era.

/kloc-in the 0 th and 9 th centuries, major western countries successively implemented the gold standard system. Under this system, money can be freely exchanged and circulated internationally without restriction, which is called currency convertibility.

This currency convertibility is an important content or typical feature of the gold standard system.

As can be seen from the above, the free convertibility of currency originates from the international gold standard, that is, the free convertibility of gold and value symbols and the free import and export of gold.

A freely convertible currency is called a freely convertible currency when its holder can freely convert it into the currency of any other country.

According to the agreement of the International Monetary Fund, the so-called free convertibility means that there are no restrictions on the payment and capital transfer of frequent international exchanges.

In other words, this currency can be used as a means of payment unconditionally at any time in frequent international exchanges, and the other party should unconditionally accept and recognize its legal value.

We will not implement discriminatory monetary policy measures or multi-currency exchange rates. At the request of another member state, it is always obliged to exchange the domestic currency left by the other party in the current transaction. That is, the member countries participating in the agreement are obliged to accept their own currencies unconditionally.

References:

Baidu encyclopedia-freely convertible currency