Currency Exchange Controls
a.k.a. Capital controls, Exchange controls
Government limits on buying, selling or moving foreign currency in and out of a country.
In plain English
Government limits on buying, selling or moving foreign currency in and out of a country.
Exchange controls can cap how much foreign currency people can buy, force exporters to sell their dollars to the central bank, or block money leaving the country.
They are usually used to defend a weak currency or to stop money fleeing. The usual side effect is a black market, where the currency trades at a much weaker rate than the official one.
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