Cavallo was the ideologist behind the Convertibility Plan, which created a currency board that fixed the dollar-peso exchange rate at 1 peso per US dollar.

Countries without capital controls that limit the buying and selling of their currency at market rates are said to have full Capital Account Convertibility.

During the years of Cavallo's Convertibility Law, which established a 1: 1 fixed exchange rate between the Argentine peso and the United States dollar on April 1, 1991, the BCRA was mainly in charge of keeping foreign currency reserves in synch with the monetary base.

In January 2002, the new president, Eduardo Duhalde, repealed the Convertibility Law and adopted a new, provisional fixed exchange rate of 1. 4 pesos to the dollar ( a 29 % devaluation ) and the conversion of all the bank ' accounts denominated in dollars into pesos and its transformation in bonds (" Corralon "); soon afterward it completely abandoned its peg and allowed the peso to float freely, resulting in a swift depreciation of the peso, which lost 75 % of its value with respect to the U. S. dollar in a matter of months.

Since the repeal of the Convertibility Law in January 2002, the devaluation and depreciation of the peso and the end of the economic crisis, its role has been the accumulation of reserves in order to gain a measure of control of the exchange rate.

Convertibility was maintained off and on, with decreasing value in gold, until it was finally abandoned in 1929, when m $ n 2. 2727 was equivalent to one peso oro.

In June 1955 The Free Convertibility of Sterling by George Winder was published, with Fisher signing the foreword as Director of the IEA.

During the 1990s, under the Menem administration, the Convertibility Law guaranteed a fixed exchange rate of 1 U. S. dollar per Argentine peso, and the private companies that supplied electric power, telephone service, natural gas and drinking water, among others, earned consistently high profits, which could be turned into dollars and sent abroad with no loss.

" Convertibility " is a feature that corporations may add to the bonds they issue to make them more attractive to buyers.

Cavallo introduces the Convertibility Plan in 1991.

* Convertibility to common stock.

Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value.

Convertibility is an important factor in international trade, where instruments valued in different currencies must be exchanged.

Convertibility controls may be introduced as part of an overall monetary policy.

Convertibility first became an issue of significance during the time banknotes began to replace commodity money in the money supply.

However, the linchpin of the new system was the introduction of the Convertibility System.

( 1997 ) Argentina's Convertibility Plan and the IMF, AEA Papers and Proceedings, May, Vol.

However, these reserves were used to back the monetary liabilities of the Central Bank and were not available for conducting monetary policy ; by the terms of the Convertibility Law, each Argentine peso in circulation was to be matched by one American dollar in the reserves.

Economy Minister Domingo Cavallo enacted the Convertibility Law of 1991, pegging the monetary value of the Argentine peso to the United States dollar.

However, because fiat money is backed by government guarantee of a certain amount of goods and services, where the value of this is in turn determined by free market currency exchange rates, similar to the case for the international market exchange values which determines the value of metals which back commodity money, in practice there is very little economic difference between the two types of money ( types of currencies ).

It determines a suitable repayment schedule and grace period for each loan individually to meet borrowers ' currency and cash flow requirements.

In finance, a forward rate agreement ( FRA ) is a forward contract, an over-the-counter contract between parties that determines the rate of interest, or the currency exchange rate, to be paid or received on an obligation beginning at a future start date.

He explains that what changes the value of money is the value that people place on the currency, and that it is not the velocity of money that determines the value of a currency, but rather the sum of individuals ' value of the currency that determines the velocity of money.

A currency detector or currency validator is a device that determines whether bills or coins are genuine or counterfeit.

Biographer David Buckley writes, " The essence of Bowie's contribution to popular music can be found in his outstanding ability to analyse and select ideas from outside the mainstream — from art, literature, theatre and film — and to bring them inside, so that the currency of pop is constantly being changed.

The use of the term " elastic currency " in the Federal Reserve Act does not imply only the ability to expand the money supply, but also the ability to contract the money supply.

investment software program, enhancing its ability to recognize patterns in " currency fluctuations and stock-ownership trends.

True fiat money has no trust or product value of its own, but is backed only by trust in the issuing government and its ability to collect taxes or require conversion of some other resource into currency.

The difficulty lay in judging the ability of an issuing bank to be able to promptly redeem their currency for gold or silver.

English coinage was also superior to most of the other currency in use in northwestern Europe, and the ability to mint coins was a royal monopoly.

As Adam Smith noted, having money gives one the ability to " command " others ' labor, so purchasing power to some extent is power over other people, to the extent that they are willing to trade their labor or goods for money or currency.

The peso has been a floating currency ever since, which means that the currency is a physical representation of the domestic debt and whose value directly tied to people's perception of the stability of the current regime and its ability to repay the debt.

The JBS believes that the United States Constitution gave only Congress the ability to coin money, and did not intend for it to delegate this power to a banking monopoly, or to transform it into a fiat currency not backed by gold or silver.

According to him, the industry saw a need for the ability to standardize the acceptance of coins and currency on a global basis.

Without necessarily receiving great remuneration ( pay differentials under Zhivkov were within the 5: 1 range, with the overwhelming majority of salaries being within the 3: 1 range ), Party members and DS informers received very significant perquisites which involved access to accommodation, luxury imported goods, hard currency, the ability to travel abroad, superior medical and dental treatment and unhindered entry to higher education for their children.

Debt and the ability of borrowers to service that debt then becomes the underlying currency.

Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authority has the ability to alter the money supply and thus influence the interest rate ( to achieve policy goals ).

Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authority has the ability to alter the money supply and thus influence the interest rate ( to achieve policy goals ).

* Flexibility: The ability of the players to change the currency of the game ( that is, the tools they use to play it ).

The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to the U. S. dollar and the ability of the IMF to bridge temporary imbalances of payments.

In addition to these powers to charter and operate federal banks, the clause was linked to the General Welfare clause and the constitutional powers of tax collection and the ability to borrow money to give the federal government virtually complete control over currency.

The ability to exchange real money for virtual currency or scrip and then back into real money raises a great many new issues, some of which parallel traditional issues with scrip and some of which are new.