Financial Definition of Exchange Controls
Meaning of Exchange Controls
Governmental restrictions on the purchase of foreign currencies by domestic citizens or on the purchase of the local domestic currency by foreigners.
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Exchange Controls in Historical Law
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Exchange controls in Global Commerce Policy
In this regard, exchange controls is: conditions or limits imposed by governments on the extent to which residents may have access to foreign exchange reserves. WTO members may use exchange controls imposed in accordance with the Articles of Association of the IMF, but they may not use them to frustrate the intent of the GATT. For trade in services, they may not apply restrictions on international transfers and payments for current transactions where they have made specific commitments. The entries on trade policy are here. In both cases, exchange controls may be possible to safeguard the balance of payments under strictly defined conditions. See also balance-of-payments consultations and trade and foreign exchange.[1]
Exchange controlsin the wold Encyclopedia
For an introductory overview on international trade policy, see this entry.
Resources
Notes and References
- Dictionary of Trade Policy, “Exchange controls” entry (OAS)
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