Foreign exchange controls
Foreign exchange controls are the various limitations or ban imposed by the government on purchase/sale of foreign or local currencies.
Common foreign exchange controls include:
- Banning the use of foreign currency within the country
- Banning locals from possessing foreign currency
- Restricting currency exchange to government-approved exchangers
- Fixed exchange rates
- Restrictions on the amount of currency that may be imported or exported
Foreign exchange controls are usually used by countries with weak economies in an attempt to prop up a weakening currency.