Long-term balance of payments deficit will have a significant negative impact on a country's economy, and maintaining balance of payments is one of the basic goals of the government. The government can adjust the balance of payments in many ways, but for developing countries, other adjustment measures may mean greater costs. For example, the government's tight fiscal policy or monetary policy may improve the balance of payments, but it will affect the speed of economic development and worsen the unemployment situation.

2. Stabilize the local currency exchange rate and reduce the foreign exchange risk in foreign-related economic activities.

The foreign exchange risk caused by frequent and large fluctuations in exchange rate will seriously hinder a country's foreign trade and international lending activities. Countries with large foreign exchange reserves or countries with strong borrowing capacity can use or borrow reserves to stabilize the exchange rate. For developing countries lacking foreign exchange reserves, foreign exchange control is an important means to stabilize the exchange rate of local currency against foreign currency.

3. Prevent capital flight or large-scale speculative capital flow and maintain the stability of the national financial market.

Countries with weak economic strength have many defects that can be exploited by speculative capital. For example, with the rapid development of economy, commodity prices, stock prices and real estate prices often exceed their intrinsic values. If there is no foreign exchange control, this will attract speculative capital inflows, which will significantly aggravate the distortion of price signals. Once the bubble bursts, speculative capital will flee, triggering a series of chain reactions, leading to a rapid deterioration of the economic situation. Foreign exchange control is an effective means for these countries to maintain the stable operation of their financial markets.