Convertibility example sentences

Each participant country committed to guarantee the free convertibility of its currency into gold at a fixed price.A two-tier system of convertibility was established at the centre of which was the dollar.Such an elaborate system of convertibility was necessary because the distribution of gold reserves across countries was uneven with the US having almost 70 per cent of the official world gold reserves.The US monetary authorities guaranteed the convertibility of the dollar into gold at the fixed price of $35 per ounce of gold.At that time, the US dollar was the main component in the currency reserves of the rest of the world, and those reserves had been expanding as a consequence of the US running a continued balance of payments deficit (other countries were willing to hold those dollars as a reserve asset because they were committed to maintain convertibility between their currency and the dollar).There has been a move from a regime of commitment of fixed-price convertibility to one without commitments where residents enjoy greater freedom to convert domestic currency into foreign currencies but do not enjoy a price guarantee.Thus, a credible gold convertibility of the other currencies would have required a massive redistribution of the gold stock.