Currency exchange controls are government-imposed restrictions on the buying, selling, or trading of foreign currencies. These controls can include limits on currency conversion amounts, requirements for government approval, or fixed exchange rates, and are typically used to stabilize a country's economy or prevent capital flight. Countries with exchange controls often have official and black market exchange rates that diverge significantly.
Example
“Argentina has historically imposed strict currency exchange controls, limiting the amount of US dollars citizens can purchase each month to prevent capital flight and preserve foreign currency reserves.”