. Capital Account Convertibility is a feature of a nation’s financial regime that centers on the ability to conduct transactions of local financial assets (money, stocks, bonds, real estate, FDI, FII, account receivable, inventory etc) into foreign financial assets freely and at market determined exchange rates. In layman’s terms, full capital account convertibility allows local currency to be exchange for foreign currency without any restriction on the amount. Capital account convertibility is considered to be one of the major features of a developed economy.
Advantages of capital account convertibility
- It helps attract foreign investment. It offers foreign investors a lot of comfort as they can re-convert local currency into foreign currency any time 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube