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Foreign Exchange Controls
(redirected from Foreign Exchange Control)

   Also found in: Wikipedia 0.01 sec.
Foreign exchange controls
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.

Foreign Exchange Controls
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 currencies are more likely to impose more controls. See also: Pegged Currency, Crawling Peg.

foreign exchange controls
Restrictions that are imposed by a nation on the free exchange and convertibility of its own currency. Foreign exchange controls are most often instituted by countries whose currencies are weak and whose citizens prefer to hold and use the currencies of other nations. Institution of foreign exchange controls hinders foreign investors who wish to extricate their funds.


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A stricter form of a foreign exchange control can impose restrictions on the use of possession of foreign currency.
amp;nbsp; <strong>Europe Worries</strong> Standard & Poor's cut Iceland's local currency credit ratings by one notch to BBB, citing the "potentially prolonged application of foreign exchange controls.
HSBC Sri Lanka chief, Nick Nicolau, said that the bank would offer a range of products such as currency deposits and unit trust investments as well as accounts in overseas branches that would enjoy relaxed foreign exchange controls.
 
 
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