Foreign Exchange Regulation

Foreign Exchange Regulation refers to the rules and policies that a country’s government or central bank sets to manage the buying and selling of foreign currencies. These regulations aim to control how much money can be exchanged across borders, stabilize the national currency, prevent illegal activities like money laundering, and maintain economic stability. They may include restrictions, licensing requirements, or controls on currency transfers, affecting businesses and individuals engaged in international transactions. Overall, foreign exchange regulation helps balance a country’s external economic relations while safeguarding its financial system.