The regulation of payments into or out of another currency area by a government body, the foreign exchange authority. Free movement on the foreign exchange market is simultaneously prohibited. The aim of foreign exchange control is to match supply and demand for foreign currency in order to eliminate imbalances in the balance of payments and to ensure the importation of essentials over non-essentials. – Inevitably, any foreign exchange management leads to a quota system for both imported and exported goods and requires a corresponding monitoring effort. It is also in the nature of things that penalties against violations of the regulations in the system of foreign exchange control increase in severity. In some countries, currency profiteers can even be sentenced to death, just as in Germany during the Third Reich, so-called currency profiteers and war economic criminals were sentenced to death or sent to a concentration camp and killed there. – See tender obligation, export premium, exposure quota, Colbertism, cross rate, debt-equity swap, demonization, foreign exchange bank, foreign exchange ceiling, foreign exchange allowance procedure, foreign exchange offense, foreign exchange allocation confirmation, reciprocal transaction, capital foreclosure, parallelism requirement, parallel credit, monetary authority, exchange rate surveillance, forced exchange rate.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/