Exchange controls are government-imposed limitations on the purchase and/or sale of currencies. These controls allow countries to better stabilize their economies by limiting in-flows and out-flows of currency, which can create exchange rate volatility. Not every nation may employ the measures, at least legitimately; the 14th article of the International Monetary Fund’s Articles of Agreement allows only countries with so-called transitional economies to employ exchange controls.
Click to rate this post!
[Total: 0 Average: 0]