Question 1: The significance of RMB convertibility There are three levels of currency conversion: first, it is not convertible; Second, it is convertible under the current account of balance of payments; Third, it is fully convertible, that is, it can be freely convertible under current account and capital account. The definition of currency convertibility by the International Monetary Fund (IMF) defines convertibility under the current account as the lowest level. Article 8 of the International Monetary Fund Agreement stipulates the specific requirements for convertibility under the current account, which can be summarized as follows: First, member countries (or regions) shall not impose restrictions on international current payments and capital transfer without the consent of the International Monetary Fund; Second, discriminatory monetary measures and various exchange rate measures are not allowed; Third, any member has the obligation to redeem the domestic currency balance held by other member countries under the current account, that is, to convert it into domestic currency held by foreign countries. Convertibility under capital account requires lifting all kinds of exchange restrictions on foreign exchange receipts and payments by short-term financial capital, direct investment and securities investment, so that capital can freely enter and leave the country. In practice, some international reserve currencies still impose some necessary restrictions on convertibility under capital account in the process of internationalization. The International Monetary Fund does not strictly define convertibility under capital account.

Question 2: What is the significance of RMB convertibility? The exact meaning of "freely convertible RMB" refers to the convertibility of RMB under current account and capital account.

The so-called current account convertibility refers to transactions related to current account, and RMB and foreign exchange can be freely convertible without restrictions. Current account includes: commodity trade, service trade, dividend payment and free transfer.

The so-called capital account convertibility refers to the transactions related to capital account, and RMB and foreign exchange can be freely convertible without restrictions. Capital account includes: direct investment, indirect investment (stocks, bonds, international loans and deposits, etc. )

Question 3: What does the free convertibility of RMB mean? You can change it to whoever you want, and when you don't need to change RMB into foreign currency, first change it into dollars and then change it into the desired currency.

Question 4: International Finance: What is the significance of RMB convertibility? 10 point 1, which is conducive to improving the international status of the currency.

A freely convertible currency has a higher status and a greater role in the international monetary system. It plays an important or key role in a country's international affairs such as international payment, foreign exchange reserves and market intervention. For example, dollars.

2. It is conducive to the formation of multilateral international settlement and the development of international trade.

3, is conducive to the use of international capital to develop the economy.

Whether a country's currency can be freely exchanged is not a prerequisite for utilizing foreign capital, but it is a long-term influencing factor. In particular, whether foreign investors can remit interest and profits is an important factor that foreign investors must consider.

4. It is conducive to maintaining the fairness of trade and capital transactions.

5. It is conducive to gaining comparative advantages and reducing reserve risks and costs.

If a country's currency is a freely convertible currency, it can be paid in local currency when its balance of payments is in deficit, thus reducing the pressure of using the balance of foreign exchange reserves; At the same time, it can also cause the loss of investment opportunities and investment income without storing too much foreign exchange, that is, reduce the risk and cost of reserves.

6. It is conducive to meeting the requirements of international financial and trade organizations and improving various international economic relations.

Of course, a country's currency convertibility will bring some benefits, but it will also bring some negative effects. Especially when a country does not have the conditions, it will make its currency freely convertible too early, and connect its domestic financial market with the international financial market too early and too fast. Facts have proved that the negative impact will be enormous. This is especially true in developing countries.

Risks of RMB convertibility:

Realizing the convertibility of RMB capital account is the inevitable trend of further reform of China's foreign exchange management system, and it is also of great significance to promote China's economic development. However, there are many potential risks in realizing RMB capital account convertibility, such as balance of payments risk, macroeconomic stability risk, conflict risk between monetary policy independence and exchange rate stability, instability risk of financial system, and impact risk of national industries. Therefore, in the process of opening the capital account, we should improve the domestic economy.

Question 5: What do you mean that RMB is not freely convertible? It's very simple, because RMB is not foreign exchange at present, and it has no characteristics of free circulation and convertibility.

Question 6: Popular answer, what does it mean to freely exchange RMB? Don't make those awkward economic terms, look at the big head. Yes, free convertibility means that the exchange between RMB and other currencies is completely unrestricted, and the exchange transactions between financial institutions do not have to go through the China Foreign Exchange Trading Center, and the trading hours on weekdays will become 24-hour continuous transactions.

Question 7: What's the significance for individuals if the RMB is freely convertible? 20 points is 1. In fact, it is very powerful for individuals and can well avoid the risk of currency depreciation.

2. Reduce the country's foreign exchange reserves and financial shocks (similar to Germany)

It is ok for individuals to exchange dollars. There are foreign exchange banks in Shanghai and Beijing.

Question 8: What does it mean that RMB is not freely convertible? For example, your relatives sent you $6,543,800+from the United States, and you can only exchange $50,000 at most every day. If you have a company, there is no limit of $50,000.

There should be no such restrictions abroad.

Also, the amount of RMB converted into one dollar is mainly controlled by the state rather than determined by the market, but the exchange rate abroad is mainly determined by the market.

Question 9: RMB is not a convertible currency yet, so it is not freely convertible. What do you mean? For example, other countries are listed companies, and there are many shareholders, so they should be accountable to the shareholders. If there is any insider trading behind the scenes, once it breaks out, it will cause the stock price to plummet and investors to lose confidence. You don't have to buy your shares, the company goes bankrupt and is merged, and you need a new senior management team. And we belong to an unlisted company, and the boss and leader are relatives. They have the final say, don't need to explain to anyone, and force you to buy so-called internal shares without paying dividends. In this case, it is definitely unfair, so other companies can choose not to play with you, or you can play and pay the price.