Currency Convertibility and the Fund: Review and Prognosis

This paper reviews experience with currency convertibility on both the current and capital accounts, with particular attention to the Fund`s concepts and policy implications. After discussing the basic concepts of convertibility, the paper reviews the experience with convertibility in three groups of Fund members--industrial countries, developing countries, and transition countries. The paper also discusses some policy options designed to encourage acceptance of convertibility by Fund members that have not yet done so.