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Capital controls
What Impact Do Capital Control Policies Have on Currency Flows?
November 20, 2023
How do changes in government policies regarding capital controls affect the foreign exchange market?
Changes in government policies regarding capital controls can significantly influence the foreign exchange market. Implementing or relaxing capital controls can affect the flow of funds in and out of a country, impacting currency valuations. Stricter controls might restrict currency outflows, while relaxed controls could stimulate capital inflows and potentially strengthen a currency.
Tags : Capital Controls , Currency Flows , Foreign Exchange Market