Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com
  • Central Bank
    • BOC
    • BOE
    • BOJ
    • ECB
    • FED
    • PBOC
    • RBA
    • UBS
  • Currency
    • AUD
    • CAD
    • CHF
    • CNY
    • EUR
    • GBP
    • INR
    • JPY
    • RUB
    • SGD
    • USD
  • Foreign Exchange Rate
    • AUD exchange rate
    • CAD exchange rate
    • CHF exchange rate
    • EUR exchange rate
    • GBP exchange rate
    • RMB exchange rate
    • YEN exchange rate
  • Knowledge
  • News
No Result
View All Result
  • Central Bank
    • BOC
    • BOE
    • BOJ
    • ECB
    • FED
    • PBOC
    • RBA
    • UBS
  • Currency
    • AUD
    • CAD
    • CHF
    • CNY
    • EUR
    • GBP
    • INR
    • JPY
    • RUB
    • SGD
    • USD
  • Foreign Exchange Rate
    • AUD exchange rate
    • CAD exchange rate
    • CHF exchange rate
    • EUR exchange rate
    • GBP exchange rate
    • RMB exchange rate
    • YEN exchange rate
  • Knowledge
  • News
No Result
View All Result
Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com
No Result
View All Result
ADVERTISEMENT

What is exchange control

Victor by Victor
25/12/2022
in Knowledge
What is exchange control
ADVERTISEMENT

It refers to the restrictive measures imposed by a government on entry and exit in order to balance the international balance of payments and maintain the country.

Also known as foreign exchange management in China, an international trade policy in which the government imposes restrictions on imports by decree.

Control on Foreign Exchange Earnings from Exportation The strictest stipulation in export exchange control is that exporters must officially sell all their foreign exchange earnings to designated banks.

ADVERTISEMENT

When applying for an export license, the exporter should specify the price, quantity, settlement, payment method and time limit of the exported commodities and submit the L/C for inspection.

ADVERTISEMENT

Control on Foreign Exchange Imports Control on foreign exchange imports usually means that an importer can purchase a certain amount of foreign exchange at a designated bank only with the approval of the exchange control authority.

The exchange control authority decides whether to approve an importer’s purchase of foreign exchange according to the import licence.

In some countries, the approval of import exchange is done at the same time as the issuance of import license.

ADVERTISEMENT

Control of Non-tradable Foreign Exchange Non-tradable foreign exchange involves all kinds of foreign exchange receipts and payments except trade balance and capital imports and exports.

The control of non-trade foreign exchange income is similar to the control of export foreign exchange income, that is, the units or individuals concerned must sell all or part of the foreign exchange income and expenditure to designated banks at the official exchange rate.

To encourage people to obtain non-trade foreign exchange income, governments may implement other measures such as foreign exchange retention system, allowing residents to open personal service income and carry money in foreign exchange designated banks, and exempt from interest income tax.

Foreign Exchange Control on Capital InportsDeveloped countries usually adopt measures to restrict capital inportsfor the purpose of stabilizing financial markets and exchange rates so as to avoid excessive international reserves and inflation caused by capital inflows.

Among the measures they have taken are higher reserve requirements for banks to take deposits from non-residents;

No interest or reciprocal interest is paid on non-resident deposits;

Restrict non-residents from buying securities of the country.

Foreign Exchange Control on the Export of Capital Developed countries generally adopt policies to encourage the export of capital, but they also adopt some policies to restrict the export of capital in a specific period when they are faced with serious balance of payments deficit. The main measures include: stipulating the maximum amount of foreign loans of banks;

Countries and departments that restrict overseas investment by enterprises;

Interest balancing tax will be levied on residents’ overseas investment.

Control on the Import and Export of Gold and Cash Countries with foreign exchange control generally prohibit individuals and enterprises from carrying, carrying or mailing gold, platinum or silver out of the country, or limit the amount of gold, platinum or silver that they can leave the country.

Countries with exchange controls often have a registration system for the import of their own cash, setting a limit on the import and requiring it to be used for designated purposes.

The export of the country’s cash will be examined and approved by the foreign exchange control agency and the corresponding quota will be set.

A country that does not allow its currency to be freely convertible forbids the export of its cash.

Multiple exchange Rate SystemThe imposition of price controls on foreign exchange inevitably leads to the formation of de facto multiple exchange rate systems.

A complex exchange rate system is a system in which a country’s regulations and government actions result in two or more exchange rates between that country’s currency and the currencies of other countries.

Canadian dollar falls on hold;

The new rules sent the pound to its lowest level in nearly a year.

Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.

Tags: dopernespfinancial marketsinflation
Previous Post

Is foreign exchange management worth investing in?

Next Post

Foreign exchange knowledge – Foreign exchange reserves

Victor

Victor

Related Posts

blank
BOJ

JPY Slips on Bond Market Moves, But Safe-Haven Demand and BoJ Hike Bets Limit Losses

27/05/2025
blank
Central Bank

INR Slips on Dollar Demand, RBI Rate Cut Bets; Technicals Hint at USD/INR Downside

27/05/2025
blank
BOJ

BoJ’s Ueda: Inflation Target in Sight, But Risks Persist

27/05/2025
blank
Central Bank

NZD/USD Rises Ahead of RBNZ Decision as US Dollar Falters on Fiscal Worries

27/05/2025
India: Insurance Backs Traditional Medicine
News

India: Insurance Backs Traditional Medicine

27/05/2025
Gold Price Revives Amid CPI Anticipation
News

Gold Price Revives Amid CPI Anticipation

27/05/2025
Japan’s Kato to Discuss Forex
News

Japan’s Kato to Discuss Forex

27/05/2025
blank
Currency

When Did Thailand Start Using Thai Baht?

27/05/2025
blank
Currency

Is the Dollar Strong in Thailand?

27/05/2025
Next Post
Foreign exchange knowledge – Foreign exchange reserves

Foreign exchange knowledge - Foreign exchange reserves

What are the categories of foreign exchange trading platforms

Position platform of foreign exchange platform

Foreign Exchange Knowledge – Personal foreign exchange policy

Foreign Exchange Knowledge - Personal foreign exchange policy

Please login to join discussion

Tags

ALL ARS ats bam Bank of Korea bef bob Central Bank of Canada Central Bank of Russia cop cup dem Digital Currency Digital RMB Dollar Index dop eek energy crisis ern esp etb Fed rate hike financial markets forex trading gel ghs ils IMF inflation inr interest rates irr isk itl kes lak lyd monetary policy mop mro mur myr Raise Interest Rates sek Swiss National Bank

Recent Posts

blank
BOJ

JPY Slips on Bond Market Moves, But Safe-Haven Demand and BoJ Hike Bets Limit Losses

by Elena
27/05/2025

The Japanese Yen (JPY) extended its intraday losses during early European trading on Tuesday, retreating further from a one-month high...

blank

INR Slips on Dollar Demand, RBI Rate Cut Bets; Technicals Hint at USD/INR Downside

27/05/2025
blank

BoJ’s Ueda: Inflation Target in Sight, But Risks Persist

27/05/2025
blank

NZD/USD Rises Ahead of RBNZ Decision as US Dollar Falters on Fiscal Worries

27/05/2025
India: Insurance Backs Traditional Medicine

India: Insurance Backs Traditional Medicine

27/05/2025
UPI Apps in India: Incentives Driving Digital Payments

UPI Apps in India: Incentives Driving Digital Payments

27/05/2025
Gold Price Revives Amid CPI Anticipation

Gold Price Revives Amid CPI Anticipation

27/05/2025
Japan’s Kato to Discuss Forex

Japan’s Kato to Discuss Forex

27/05/2025

News

India: Insurance Backs Traditional Medicine

India: Insurance Backs Traditional Medicine

27/05/2025
UPI Apps in India: Incentives Driving Digital Payments

UPI Apps in India: Incentives Driving Digital Payments

27/05/2025
Gold Price Revives Amid CPI Anticipation

Gold Price Revives Amid CPI Anticipation

27/05/2025
Japan’s Kato to Discuss Forex

Japan’s Kato to Discuss Forex

27/05/2025
blank

NZD/USD Climbs to Six-Month High as US Debt Concerns Weigh on Dollar

26/05/2025
blank

EUR/JPY Rebounds from Monthly Low on US Tariff Delay, Eyes Key Resistance Levels

26/05/2025
Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com

MydayFinance (www.mydayfinance.com) is a comprehensive foreign exchange industry website, providing global users with 24-hour comprehensive and timely foreign exchange market information, foreign exchange rate real-time query, foreign exchange rate conversion and other content.【Contact us: wougua@gmail.com】

Recent Posts

  • JPY Slips on Bond Market Moves, But Safe-Haven Demand and BoJ Hike Bets Limit Losses 27/05/2025
  • INR Slips on Dollar Demand, RBI Rate Cut Bets; Technicals Hint at USD/INR Downside 27/05/2025
  • BoJ’s Ueda: Inflation Target in Sight, But Risks Persist 27/05/2025
  • NZD/USD Rises Ahead of RBNZ Decision as US Dollar Falters on Fiscal Worries 27/05/2025
  • India: Insurance Backs Traditional Medicine 27/05/2025

Tags

ARS ats Bank of Korea bam bef bhd bob Central Bank of Brazil CAD to CNY Central Bank of Canada Central Bank of Russia CHF to CNY cop cup dem Digital Currency Dollar Index dop eek ern esp financial markets forex trading gel ghs

Useful Links

Home

ABOUT US

Disclaimer

Privacy Policy

Article sitemap

Forex Trading Tips

Copyright © 2024 mydayfinance.com

No Result
View All Result
  • Home
  • Central Bank
  • Currency
  • Foreign Exchange Rate
  • News

Copyright © 2024 mydayfinance.com MydayFinance (www.mydayfinance.com) is a comprehensive foreign exchange industry website, providing global users with 24-hour comprehensive and timely foreign exchange market information, foreign exchange rate real-time query, foreign exchange rate conversion and other content.