What Are Foreign Exchange Controls?

Foreign exchange control (Foreign Exchange Control) refers to restrictive measures imposed by a government on foreign exchange in and out in order to balance international payments and maintain the exchange rate of its currency. Also known as foreign exchange management in China. An international trade policy that restricts international settlement and foreign exchange trading through laws and regulations that restrict imports.

Foreign exchange control

Foreign exchange control began during the First World War. then
Generally, the government authorizes the Ministry of Finance, the Central Bank, or another specialized agency as the agency to implement foreign exchange control. For example, after the UK implemented foreign exchange control in 1939, the British Treasury was designated as the authority to determine foreign exchange policy.
Divided into two kinds of people and things. For people includes legal and natural persons. It is divided into residents and non-residents according to the differences between legal persons and natural persons in and outside the foreign exchange control countries. Foreign exchange control treatment is different for residents and non-residents. As residents foreign exchange expenditures
(1) Subject of foreign exchange control
The subject of foreign exchange control refers to the executor of foreign exchange control. This subject, by
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One: yes
There are three types of foreign exchange control:
Countries and regions with strict foreign exchange control. These countries are typically characterized by an extreme lack of foreign exchange, economic underdevelopment or
The positive aspect of implementing foreign exchange control is that the government can achieve the country through certain control measures.
  1. Prevent capital flight
  2. Maintain exchange rate stability
  3. Protecting the domestic currency in the unified domestic market from speculation
  4. Facilitate differential treatment of trade
  5. Protect national industry
  6. Conducive to national economy and people's livelihood
  7. Increase currency value and stabilize prices
1.
1. promote
(1) Design and implement
1. damage
Foreign exchange control refers to the implementation of various management and control measures by the competent monetary and financial authorities of a country over foreign exchange settlement, trading, loans, transfers, and exchange rates.
1. Subject of foreign exchange control
It is the institution that implements foreign exchange control. Each country generally authorizes the country's central bank or a specialized agency to formulate and supervise the implementation of foreign exchange control laws, policies and regulations.
2. Object of foreign exchange control
The objects of foreign exchange control generally include:
1. People objects. Countries usually treat residents and non-residents differently. Generally speaking, foreign countries have stricter foreign exchange controls on residents, and foreign exchange controls on non-residents are more relaxed.
2. Objects. Including import and export commodities, currencies, securities and other payment vouchers, as well as precious metals such as gold and silver and their manufactured products.
3 Contents of foreign exchange control
1. Regulation of trade items
Control of foreign exchange payment on import; Control of foreign exchange collection on export;
2. Control of non-trade items
On the whole, foreign exchange controls on non-trade items have loose income and strict expenditures; developed countries have strict restrictions on developing countries.
3 Regulation of capital items
Some developed countries need to adopt some measures to limit foreign capital inflows due to their long-term surpluses in their balance of payments. Generally, developed countries do not restrict capital exports.
In order to develop the national economy and strive for balance of payments, developing countries have taken more measures to limit the outflow of funds and encourage foreign investment.
Policy.
4 Control of precious metals such as cash, gold and their products
The emphasis is generally on restricting the export of precious metals such as cash, gold, and their manufactured goods. In addition, foreign exchange control has a very important content, which is the management of exchange rates. The central content of exchange rate control is the implementation of a complex exchange rate system, which regulates and controls foreign exchange receipts and payments by regulating different exchange rates.

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