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  • Advantages of Convertibility

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    RAKSHIT RAJ IET Lucknow Student
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    Convertibility of a currency has advantages like signifying a stable financial market, greater liquidity, and easier access to foreign capital, but it also has disadvantages such as increased foreign debt, negative impacts on trade balances and exports, high volatility, and a lack of necessary economic fundamentals.

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    Convertibility of a currency has advantages like signifying a stable financial market, greater liquidity, and easier access to foreign capital, but it also has disadvantages such as increased foreign debt, negative impacts on trade balances and exports, high volatility, and a lack of necessary economic fundamentals.

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    © All Rights Reserved
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    11 views2 pages

    Advantages of Convertibility

    Uploaded by

    RAKSHIT RAJ IET Lucknow Student
    Convertibility of a currency has advantages like signifying a stable financial market, greater liquidity, and easier access to foreign capital, but it also has disadvantages such as increased foreign debt, negative impacts on trade balances and exports, high volatility, and a lack of necessary economic fundamentals.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Advantages of Convertibility

    • Sign of stable and mature market


    • Increased liquidity in financial markets
    • Better access to a variety of goods and
    services.
    • Improved employment and business
    opportunities
    • Easy access to foreign capital
    Disadvantages of Convertibility

    1. Foreign debt burden

    2. Impacts balance of trade, and exports

    3. High volatility

    4. Lack of fundamental prerequisites

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