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Exchange control refers to a set of governmental regulations and restrictions imposed on the buying, selling, and usage of foreign currencies and foreign exchange transactions. It is a mechanism through which a country’s central bank or monetary authority regulates the flow of foreign currency to maintain economic stability and control over its balance of payments. Exchange control is primarily aimed at preventing excessive outflow of foreign exchange, avoiding speculative transactions in foreign currencies, and ensuring that foreign currency is available for essential imports and _____ _________ __________ __________ ________ ___ ______ _________ _________.
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