The regular resources cash balance at the end of 2004 was 329 million, consisting of 318 million in convertible currencies and 11 million in non convertible currencies.

Table 5 Non convertible currencies held at 31 December 2004

The equivalent of 1,491,424 ( 1,099,180) is held in currencies classified as non convertible, as follows

Table 5 shows details of the United States dollar equivalent of non convertible currencies held at 31 December 2004.

Financial contributions to accounts established under Article 18 shall be payable in freely convertible currencies and shall be exempt from foreign exchange restrictions.

Even more extraordinarily, when these new currencies emerged as the new claimants to reserve status, they had only recently become convertible for current account transactions, and capital flows were still restricted.

The amount shown in statement II for cash and term deposits represents the total of all cash balances (including funds held in non convertible currencies), net of any negative bank balances.

This would not create a budget deficit for rich countries. Recipient countries would have to pay the IMF a very low interest rate the composite average treasury bill rate of all convertible currencies.

The renminbi is still non convertible.

The range of currencies included in the SDRs would have to be widened, and some of the newly added currencies, including the renminbi, may not be fully convertible. This would, however, allow the international community to press China to abandon its exchange rate peg to the dollar and would be the best way to reduce international imbalances.

Second, China will have to make its currency convertible.

(The yuan should be included as soon as China makes its currency convertible.)

Bank reserves were in silver coins, and banknotes were convertible solely into silver.

Contingent convertible bonds, or cocos, have been proposed as a solution to this problem.

Exchange of currencies

The financial plan for 2004 recommended a minimum regular resources convertible cash balance of 79 million.

Ideally, Asian currencies would rise much more than 15 while European currencies would rise less.

Moreover, some emerging market currencies are joining the club of international currencies for the first time.

Some countries devalued their currencies.

Wanted Chinese Leadership on Currencies

That the exported goods are furnished against foreign currency convertible within three months of the date of shipment.

A World of Multiple Reserve Currencies

That is also true of currencies.

The lesson of the 1960 s suggests that a fully convertible renminbi could rapidly become a major international reserve currency.

Efficiency dictates the use of fewer and larger currencies (and foreign investors, understandably wary of weak and volatile currencies, demand it).

Tensions are rising over currencies as well.

But that's just part of the story. You have a similar trend with currencies currencies going through an extreme time of stability.

This is particularly true with respect to lending in foreign currencies to economic agents that do not have revenues in those currencies.

However, some claims were presented in other currencies, and some others were presented in United States dollars after conversion from other currencies.

depreciation of nonconvertible currencies. In 2004, the amount written off plus the adjustment for overvaluation of cash held in nonconvertible currencies totalled 2.7 million.

Working capital is measured through the difference between resources in cash or readily convertible into cash (Current Assets), and cash requirements (Current Liabilities).

Moreover, the eurozone itself is a mini gold standard, with heavily indebted members unable to devalue their currencies, because they have no currencies to devalue.

So products were developed that allowed investors to borrow easily in several currencies at once and invest in a portfolio of high interest rate currencies.

To be sure, all three currencies have their critics.

Since then, most emerging market currencies have rebounded sharply.

Given that the renminbi s real and expected rates of return are higher than the real rate of return of other currencies, it has become a positive carry against foreign currencies, reinforcing the tendency to hold assets in renminbi and liabilities in foreign currencies.

And floating and fixed exchange rate regimes coexist uneasily, because volatility tends to affect the floating currencies (often the euro, and recently the Latin American currencies).

Will exchange rates between the major currencies be dangerously unstable? Will those responsible for managing central bank reserves, seeking to maximize returns, shift erratically between those currencies?

Prohibition of certain transactions for prudential reasons also makes sense, particularly for borrowing in foreign currencies by economic agents that do not have revenues in those currencies.

Currencies fell, interest rates rose, and credit default swaps soared.

In order for some currencies to depreciate, others must appreciate.

Some of the amino acids are convertible (with the expenditure of energy) to glucose and can be used for energy production just as ordinary glucose.

They can be used only by converting them into one of four currencies, at which point they begin to carry interest at those currencies combined treasury bill rate.

However, for expenses incurred in specific currencies as determined by the International Civil Service Commission, the maximum amounts mentioned in all paragraphs below shall be established in those currencies.

Parties could be asked to agree that annual contributions be fixed in euros and the equivalent of the euro amount be paid in any convertible currency.