Governments impose currency restrictions in their countries to ________.

Question

Quizplus · Accepted Answer

Currency restrictions are imposed by governments in their countries to protect their currencies from speculators seeking to make a profit by manipulating exchange rates. This is done by limiting the amount of foreign currency that can be purchased or sold, controlling the flow of capital in and out of the country, and closely monitoring foreign exchange transactions. By limiting the amount of speculation in the currency markets, governments hope to stabilise their currencies and prevent sharp fluctuations that can harm their economies.

Governments Impose Currency Restrictions in Their Countries to ________