Block · Capital controls
Quotas on residents' foreign-currency purchases and outward remittances
- What it is
- A cap per person and per period (month or year) on how much foreign currency residents may buy or remit abroad without prior approval, typically enforced through bank-level reporting against a national ID.
- Why it counts
- By rationing access to foreign currency it limits how much household savings can be moved into foreign assets, keeping them in domestic deposits and bonds that pay below-market or below-inflation returns.
When it was in force
- China: 2007 → now, in force
- Argentina: 2019 → 2025, historical
- India: 2004 → now, in force
3 examples
China
2007 → nowIn forceSAFE caps individuals' annual foreign-exchange purchases and sales at the equivalent of USD 50,000 per person, beyond which documentary proof of purpose is required.
China today: index 59.5国家外汇管理局《个人外汇管理办法实施细则》(汇发〔2007〕1号), 第二条 (USD 50,000 annual quota per person)Primary source
“年度总额分别为每人每年等值 5 万美元”
Argentina
2019 → 2025HistoricalThe BCRA required prior approval for individuals buying foreign currency for asset formation above US$ 200 a month, the core of the 'cepo cambiario'.
Argentina today: index 40.1Banco Central de la República Argentina, Comunicación "A" 6815 (28 October 2019), point 1 (US$ 200 monthly limit for hoarding)Primary source
“Se establece la conformidad previa del BCRA para el acceso al mercado de cambios por parte de Personas Humanas residentes para la constitución de activos externos”
India
2004 → nowIn forceResident individuals may remit abroad, for current or capital account purposes, only up to USD 250,000 per financial year without RBI approval.
India today: index 60.6Reserve Bank of India, Liberalised Remittance Scheme under FEMA 1999 and the FEM (Current Account Transactions) Rules (limit USD 250,000 per financial year)Primary source
“all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction”
Examples and their dates reviewed .
More capital controls
Further reading
- Expanding the Landscape of Cross-Border Flow Restrictions: Modern Tools and Historical Perspectives
- Financial engineering is no substitute for interest rates: Lessons from Türkiye
- Argentina: Request for an Extended Arrangement Under the Extended Fund Facility—Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Argentina (IMF Country Report No. 25/95)
- The Aftermath of Debt Surges
7 more on capital controls
- Macroprudential tools, capital controls, and the trilemma: Insights from the Bretton Woods era
- Indian Financial Sector: Structure, Trends and Turns
- The Liquidation of Government Debt
- Capital control measures: A new dataset
- Financial repression: Then and now
- A New Database of Financial Reforms
- Financial Repression and Exchange Rate Management in Developing Countries: Theory and Empirical Evidence for India