Search Results For: forex controls
Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents. Common foreign exchange controls include: Banning the use of foreign currency within the country.
Countries with weak and/or developing economies generally use foreign exchange controls to limit speculation against their currencies. They are often accompanied by capital controls that limit the amount of foreign investment in the country.
Currency exchange controls are government restrictions that limit its citizens'
ability to purchase foreign currencies and limit purchases of the home curr.
Let us make an in-depth study of the Foreign Exchange Control: 1. Definition of
Foreign exchange control 2. Objectives of Foreign Exchange Control 3. Types of
Foreign Exchange Control 4. Conditions Necessitating Foreign Exchange
Restrictions on foreign currencies in a country. These controls may range from
the basic, such as banning the use of a foreign currency in domestic stores and
shops, to the dramatic, such as banning currency conversion. Every country has
some foreign exchange controls to protect their currencies, but nations with weak
Exchange control, governmental restrictions on private transactions in foreign
exchange (foreign money or claims on foreign money). The chief function of most
systems of exchange control is to prevent or redress an adverse balance of
payments by limiting foreign-exchange purchases to an amount not in excess of …