Definition: A convertible currency is a currency that can be freely exchanged for another currency on the foreign exchange market without any restrictions or limitations imposed by the issuing country. It is also known as a hard currency and is widely accepted for international trade and transactions.
Examples of convertible currencies include the US dollar (USD), euro (EUR), British pound (GBP), and Japanese yen (JPY). These currencies are trusted and accepted worldwide, making them integral to global financial markets.
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