What Are The Methods Of Exchange Control?


2 Answers

Anonymous Profile
Anonymous answered
Methods of exchange control
1. Unilateral method
• Exchange intervention
• Exchange equalization fund method
• Exchange restriction method
2. Bilateral or multilateral method
• Exchange clearing agreement
• Transfer moratorium
• Payment agreement
• Standstill agreement
• Compensation agreement
Shalin Choksi Profile
Shalin Choksi answered
You seem to be referring to Foreign Exchange Controls which is a kind of system adapted by the banks and the government of that country. Some of the main functions of the system are to stop the use of foreign exchange in the country. It is very important to see that the people of the country do not use any kinds of foreign exchange in the country as it is against the law. The method of the policy is quite simple, the government of the company has to keep a check on the people which is really not possible to do so. The government mostly focuses on people such as exporters and importers and multinational companies who may have a stock of foreign currency.

These days the restrictions on such controls are being withheld in order to promote free trade among neighbouring countries.

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