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Economics/Foreign Exchange Money Purchase Power.

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Foreign Exchange
Foreign Exchange  
QUESTION: Dear Pallas21

http://en.wikipedia.org/wiki/Foreign_exchange_market

1. Can a Individual in his country buy Foreign Exchange Money without any limits for Business, Trade ?. i.e. Any Amount of Foreign Exchange money.
2. Do the Government of each country has different laws for foreign exchange money purchase power limits ?.

In case the answer is either yes or no for 2, what are the
reasons ?

Some Examples,

US National wants to purchase Australian Dollars, Euros, Great Britain Pounds, Indian rupees etc.
British National wants to purchase US Dollars, Euros, Japanese Yen etc
Indian National wants to purchase US Dollars, Euros, Great Britain Pounds, Japanese Yen etc

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

ANSWER: Hello and thank you for your query. The answer to question 1 is: No.  There are limits which vary from country to country and even if they are not explicitly written they are set by the amount of money a person has available for such transactions, usually, in her bank account. The answer to question 2 is yes. Different countries have different regulations. e.g. Argentina, Venezuela, CUba, Mainland China. You will find quite a bit on those countries regulations if you look online.
I trust this will help.

---------- FOLLOW-UP ----------

QUESTION: Dear Pallas21

Thank you.

Regarding question 2, as you mentioned there are different laws and regulations for foreign exchange money purchase power limits set by every
country government.

What are the parameters, factors, reasons for imposing restrictions on foreign exchange money purchase power limits for the individual ?

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

Answer
To keep the answer simple: it all boils down to policy decisions. For example: the economic authority wants to keep the exchange rate at a certain level or does not want to allow people to buy hard currency because of the fear that it will make it way out of the country.  Every country is different and the reasons respond to either economic policy or simply policy and regime.

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