Capital Controls

Capital controls are regulations imposed by governments to manage the flow of money in and out of a country. These controls can include taxes, limits on foreign investments, or restrictions on currency exchange. The primary purpose is to stabilize the economy, manage inflation, control exchange rates, and protect local industries. By influencing how much money can move across borders, governments aim to prevent financial crises and maintain economic stability during turbulent times. While they can safeguard an economy, capital controls may also deter foreign investment and limit opportunities for local businesses.