Currency Convertibility And The Transformation Of Centrally Planned Economies - Occasional Paper 81 (S081Ea0000000)

The formerly communist Eastern European states are now aiming for market economies. Reforms are contemplated or under way, including an overhaul of fiscal objectives. These include the restoration of macroeconomic stability, major price liberalization, restructuring of firms and budgetary systems and the establishment of commercial banking activities. In addition there are efforts to establish currency convertibility - the freedom to buy or sell foreign exchange, generally for payments related to international flows of goods, services and financial assets, which this paper examines.