1 reduces the efficiency of international resource allocation.

It limits the role of the market mechanism. Under foreign exchange control, foreign exchange is often not determined by supply, and the purchasing power parity is out of line, which can not truly reflect the external value of the local currency, leading to the deviation between domestic prices and international market prices, distorting the international comparison of commodity prices, leading to the international flow of commodities, affecting the international division of labor and reducing the efficiency of international resource allocation.

2

Hinder the development of international trade and aggravate international trade friction.

Intensify international suspicion, friction, contradictions and even trade wars.

3. Restrict international capital flows

For countries short of funds, foreign exchange control will bring difficulties to foreign investors' interest, dividends, distribution and debt repayment in the host country.

The attraction to foreign investors has declined.

Due to the control of this project by capital surplus countries, it is difficult to find profit opportunities for their surplus capital.