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Reference.org
Foreign exchange controls
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<p>Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign <a href="/facts/Currency/g5GPGfTe">currencies</a> by residents, on the purchase/sale of <a href="/facts/Local_currency/tgqH6MQF">local currency</a> by nonresidents, or the transfers of any currency across national borders. These controls allow countries to better manage their economies by controlling the inflow and outflow of currency, which may otherwise create <a href="/facts/Exchange_rate/R4nLyEx1">exchange rate</a> volatility. Countries with weak and/or developing economies generally use foreign exchange controls to limit <a href="/facts/Currency_speculation/BntB5nqU">speculation</a> against their currencies. They may also introduce <a href="/facts/Capital_controls/kVSwk1G1">capital controls</a>, which limit foreign investment in the country. </p>