State and explain two arguments in favor of exchange control.
- Stabilize the forex market by avoiding constant appreciation and depreciations of currency.
- It effective in dealing with a problem of capital movements in that the government’s monopoly over the foreign exchange cat effectively stop or reduce the capital refusing to release foreign exchange for capital transfer.
- To encourage importation of priority goods so as to promote a high standard of living.
- To enhance the development of priority sectors. This is done by providing better foreign exchange rates to the government.
- To solve a problem of balance of payment.
CATEGORIES Economics
TAGS Dr. Bbosa Science
