Forex Capital account convertibility

Forex Capital account convertibility:

- It refers to economic TOOL expected to encourage capital flows more efficient and CATALYSE GROWTH impulses and to enable society to achieve a stable balance between internal and external prices.

- The basic objective of capital account convertibility is to:

- Deepen and integrate financial markets

- Increasing access to global savings

- Discipline domestic policy markers and

- Allow greater freedom for individual decisions

- A more open capital account would facilitate greater access to higher capital, additional domestic resources thus leading to higher growth and reduce the cost of capital and facilitating access to international financial markets.