Directly, a government designates a central bank or other financial and monetary authorities to control everything directly and compulsorily through the form of decrees.
The foreign exchange administration departments of the government directly control and manage the sources and use of foreign exchange funds.
These include administrative control and management, quantity control and management, cost control and management.
Where foreign exchange funds are insufficient and foreign exchange markets are not sound, most countries implement direct exchange control.
It is a comprehensive and strict foreign exchange control means for the government to directly intervene in foreign exchange transactions, stabilize foreign exchange speculation, prevent foreign exchange evasion and arbitrage, and seek balance of international payments.
Its characteristic is to replace the free foreign exchange market with the official foreign exchange market and directly control the supply and demand of foreign exchange through the leverage of the official exchange rate.
