Why Control Foreign Exchange Inflow in 222

1. expand domestic commodity production: restrict the import of foreign commodities through foreign exchange control and promote the export of domestic commodities, so as to expand domestic commodity production. V

through foreign exchange control, we can restrict the import of similar cheap goods that threaten the existence and development of domestic infant industries, and at the same time encourage the export of domestic products, so that domestic infant industries can grow rapidly in the domestic market through scale expansion and promote the promotion and development of national economy.

2. Maintain balance of payments: restrict capital flight and foreign exchange speculation through foreign exchange control to stabilize the exchange rate and maintain balance of payments.

maintaining exchange rate stability is a prerequisite for developing foreign economy, and balancing international payments is one of the economic policy objectives that any country has always adhered to. Once the balance of payments deteriorates, the exchange rate of local currency falls, which leads to capital outflow and aggravates the balance of payments deficit. The use of foreign exchange control can limit capital flight and foreign exchange speculation, and achieve the purpose of stabilizing the exchange rate and improving the balance of payments.

3. Stabilize domestic prices: Stabilize domestic prices through foreign exchange control to avoid the impact on the domestic economy caused by price changes in the international market. Foreign exchange control can block the import of international inflation.

International inflation can be introduced into China through commodity trade, which leads to imported inflation. Countries with stronger currencies often face the impact of foreign capital. Through foreign exchange control, the import of commodities and capital inflows are restricted, the introduction of international inflation is blocked, and the stability of domestic price level is maintained.