But, she said, with the advent of greater trade and globalisation, a consensus emerged that
exchange controls, if not managed and administered well, could create distortions and can disrupt economic efficiency and growth.
"Lifting
exchange controls may seem obvious now, but it was revolutionary back then."
* To control the outflow of foreign currency through the tourism sector and maintain the dollar reserves of the Central Bank, the Argentine government imposed
exchange controls. For example, in December 2013, the government increased taxes on debit and credit card purchases abroad for "tourism and traveling purposes" (including flight and tour packages) from 20% to 35% to deter the outflow of currency from Argentina.
German Europe did not allow Greek
exchange controls so the Oligarchs withdrew some 240,000 million Euros which was funded by massive and unrepayable State debt.
Temporary
exchange controls can defuse the situation otherwise it will have a negative impact on masses and every segment of the economy besides ransacking central bank's reserves, he said.
New York (AirGuide Features - Inside Air Travel) Fri, Jul 11, 2014 United Airlines will drop its daily flight to Caracas from Houston, starting in September, joining other carriers who have cut service over the country's foreign
exchange controls. United said it will operate four flights a week to the country, starting September 17.
To get the deal done, Argentina loosened foreign
exchange controls that have been central to the presidency of left-leaning Cristina Fernandez.
Types of capital control include
exchange controls that prevent or limit the buying and selling of a national currency at the market rate.
The
exchange controls were originally imposed to reduce capital flight, which had led to a significant decrease in international reserves during the year prior to their establishment.
In our opinion, changing and arbitrary laws, price and
exchange controls, and other distorting and unpredictable economic measures have undermined private-sector investment and hurt productivity--weakening Venezuela's domestic economy.
Exchange controls are a type of capital control that regulates the way the domestic currency relates to international currency markets.
The new Portfolio examines the array of tax and legal issues affecting the business environment in Vietnam and carries analyses of the regulation of foreign investment, currency and
exchange controls, trade and commerce regulation, immigration regulations, labor relations and business financing.
