Question
How can global financial centers (GFCs) contribute to
capital account convertibility?Solution
Providing a platform for cross-border financial transactions: GFCs often offer a wide range of financial services, including foreign exchange, trade finance, and international payment systems, that facilitate cross-border financial transactions. These services can help to make it easier and more efficient for individuals and institutions to move capital across borders, reducing transaction costs and increasing the speed and volume of cross-border flows.
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