Governments can use foreign exchange controls to help them fix the value of their currency.

Question

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Governments can use foreign exchange controls, such as setting restrictions on the amount of currency that can be purchased or sold, to help maintain the value of their currency. This is typically done to prevent rapid fluctuations or devaluations that could harm the economy. However, such controls can also limit international trade and investment.

Governments Can Use Foreign Exchange Controls to Help Them Fix