exchange controls

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Exchange controls

Government restrictions on the purchase of foreign currencies by domestic citizens or on the purchase of the local domestic currency by foreigners.

Exchange Controls

Laws or regulations that a government may institute limiting foreign exchange of its currency. A government may enact exchange controls on one currency (that is, a government may say that its currency is not convertible into Zimbabwean dollars, for example), or it may enact exchange controls over all currencies. Some countries have exchange controls to prevent citizens from making bad investment decisions in, say, a country experiencing hyperinflation, while a few communist countries enact exchange controls to prevent capitalist influences. See also: Inconvertibility.

exchange controls


exchange controls

References in periodicals archive ?
Minnis plans for the liberalization of the administration of the countrys exchange control regime is expected to promote greater opportunities for Bahamian investors and small and medium-sized businesses/enterprises (SMEs).
The Ukraine National Bank has relaxed currency exchange controls.
Within the former group of companies the most important was was CANTV the present paper demonstrates that, with the exception of the CANTv shares, the influence of global factors on the portfolio of ADRs in the BvC was insignificant before the imposition of exchange controls.
Exchange controls used to be the standard response of countries with balance-of-payments crises.
Iceland's central bank enacted the foreign exchange controls, or restriction on the free movement of its currency, during the financial crisis.
Now the combination of an economy that shrank 8% last year and has already contracted by 29% this year, the likelihood of continued political and social upheaval (see NotiSur, 2003-06-20), and the exchange controls are making some of those immigrants consider going home.
The others, which do not have the exchange controls, have to go to the IMF (International Monetary Fund).
This paper will investigate the impact that the relaxation of exchange controls within European economies has had on the interdependence of European equity markets.
Coupled with the dismissal of Deputy Prime Minister Mr Anwar Ibrahim, the implementation of exchange controls takes Malaysia into murky waters.
But the government's watchful eye - manifested through the proposal and approval process, exchange controls and a cultural belief that 10 percent to 15 percent is a fair rate of return - may dampen those expectations.
Brinkerhoff attributes the enormous infusion of foreign funds to lifting of exchange controls, liberalization of investment regulations, the new European Community agreements, and a general concerted movement toward international portfolio diversification.

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