What do you mean by Exchange Control ? State its objectives and advantages.
Answers
Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents. Common foreign exchange controls include: Restrictions on the amount of currency that may be imported or exported.
Objective : Exchange control is one of the important means of achieving certain national objectives like an improvement in the balance of payments position, restriction of inessential imports and conspicuous consumption, facilitation of import of priority items, control of outflow of capital and maintenance of the external value.
Advantages : Exchange control, governmental restrictions on private transactions in foreign exchange (foreign money or claims on foreign money). 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.
if you are satisfy with my ans then mark me as a brainlist
if there is something wrong then kindly rectify it