- Governmental restrictions on private transactions in foreign money or claims on foreign money.Residents are required to sell foreign money coming into their possession to a central bank or specialized government agency at exchange rates set by the government. The chief function of most systems of exchange control is to maintain a favourable balance of payments. See also foreign exchange.
* * *▪ government restrictionsgovernmental restrictions on private transactions in foreign exchange (foreign money or claims on foreign money). The chief function of most systems of exchange control is to prevent or redress an adverse balance of payments by limiting foreign-exchange purchases to an amount not in excess of foreign-exchange receipts.Residents are required to sell foreign exchange coming into their possession to the designated exchange-control authority (usually the central bank or specialized government agency) at rates set by the authority. Some systems permit recipients of exchange from certain sources to sell a portion of such receipts in a free market. Because the control authority thus becomes the only foreign-exchange market, it can determine the purposes for which foreign exchange can be spent and to fix the amount that is available for each purpose.A controlled exchange rate is usually higher than a free-market rate and has the effect of curbing exports and stimulating imports. By limiting the amount of foreign exchange a resident can purchase, the control authority can limit imports and thus prevent a decline in its total gold reserves and foreign balances.
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exchange control — ➔ control1 … Financial and business terms
exchange control — Restrictions on the purchase and sale of foreign exchange. It is operated in various forms by many countries, in particular those who experience shortages of hard currencies; sometimes different regulations apply to transactions that would come… … Accounting dictionary
exchange control — Restrictions on the purchase and sale of foreign exchange. It is operated in various forms by many countries, in particular those who experience shortages of hard currency; sometimes different regulations apply to transactions that would come… … Big dictionary of business and management
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exchange control — /ɪks tʃeɪndʒ kənˌtrəυl/ noun the control by a government of the way in which its currency may be exchanged for foreign currencies ● The government had to impose exchange controls to stop the rush to buy dollars … Marketing dictionary in english
exchange control — /ɪks tʃeɪndʒ kənˌtrəυl/ noun the control by a gov ernment of the way in which its currency may be exchanged for foreign currencies … Dictionary of banking and finance
exchange control — noun : governmental regulation of the conversion of currencies, the purchase of foreign coin or gold, and the transfer of funds between countries … Useful english dictionary
exchange — exchanger, n. /iks chaynj /, v., exchanged, exchanging, n. v.t. 1. to give up (something) for something else; part with for some equivalent; change for another. 2. to replace (returned merchandise) with an equivalent or something else: Most… … Universalium
exchange rate — the ratio at which a unit of the currency of one country can be exchanged for that of another country. Also called rate of exchange. [1895 1900] * * * Price of one country s money in relation to another s. Exchange rates may be fixed or flexible … Universalium
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