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Change control - Coggle Diagram
Change control
It is characterized by:
Setting of an exchange rate by state authority
The normal supply and demand mechanisms are out of operation
The administrative regulation for its control is applied by the state
Restriction on the entry and exit of foreign currency
Advantage
Avoid collapse in the economic relations of the foreign country
Protects capital leaks
Disadvantages
A parallel currency market is created
Certain goods and services may be in short supply
The types are:
Change control
Partial control to parallel market
Rigid change
Multiple changes
fixed exchange
Flexible change
Unique change