Advantages and disadvantages of foreign exchange control
The advantage of implementing foreign exchange control is that the government can achieve the balance of international payments, exchange rate stability, incentive restrictions and domestic price stability through certain control measures. Its disadvantage is that it can't give full play to the role of market mechanism. Because of artificially setting exchange rate or setting other obstacles, it not only causes domestic price distortion and inefficient resource allocation, but also hinders normal international economic exchanges. Generally speaking, in order to revitalize the national economy, developing countries advocate adopting foreign exchange control, while developed countries tend to completely abolish foreign exchange control.