Foreign exchange controls

From Wikipedia, the free encyclopedia

Foreign Exchange

Exchange Rates Currency band Exchange rate Exchange rate regime Fixed exchange rate Floating exchange rate Linked exchange rate

Markets Foreign exchange market Futures exchange

Products Currency Currency future Forex swap Currency swap Foreign exchange option

See also Bureau de Change

Foreign exchange controls are 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.

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

Countries with foreign exchange controls are also known as "Article 14 countries," after the provision in the International Monetary Fund agreement allowing exchange controls for transitional economies.

[edit] Countries with foreign exchange controls

(list very incomplete)

• Argentina
• Bahamas [1]
• Brazil [2]
• People's Republic of China
• Cuba
• Malaysia
• South Africa [3]
• Venezuela