Exchange Control(s)

foreign exchange

The rationing of foreign currencies, bank drafts, and other monetary instruments for settling international financial obligations by countries seeking to ameliorate acute balance of payments difficulties. When such measures are imposed, importers must apply for prior authorization from the government to obtain the foreign currency required to bring in designated amounts and types of goods. Since such measures have the effect of restricting imports, they are considered nontariff barriers to trade.

See balance of trade.

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