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Currency Swaps
If the currency of one country is not convertible, the central banks o f the two countries can exchange their currencies, and the country with the non-convertible currency can use the convertible currency of the other country. These are called currency swaps. The country with the non-convertible currency will later purchase back its own currency using gold or convertible currency.
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The International Monetary Fund The International Monetary Fund is a kind of an embryo World Central Bank. Its objectives are: i. To work towards the full convertibilit
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