Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:

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Exchange controls are typically established by nations that are experiencing balance-of-payment problems. These controls are put in place to limit the outflow of earned and invested funds to help stabilize the country's economy. Countries with high trade surpluses or that are part of larger trade agreements are less likely to need exchange controls, as their economies are already stable and less vulnerable to external economic shocks. Similarly, open economies, which are characterized by free movement of capital, are also less likely to impose exchange controls.

Some Nations Establish Limits on the Amount of Earned and Invested