Currency Trading Restrictions Assignment Example | Topics and Well Written Essays - 250 words

Currency Trading Restrictions - Assignment Example Trade restrictions are widely known to impact negatively on a country’s import and export activities. The establishment of foreign exchange restrictions is often associated with high forex rates to the extent that goods become extremely expensive to export (Dothan, Ramamurti & Ulman, 1996). This in turn implies that fewer goods can be exported and the country’s domestic residence end up with little foreign currency with which to import goods. In this sense, forex restrictions negatively affect import and export trade in many cases. The move by the National Bank of Belarus to lift the forex restriction will benefit multinationals to a great extent. For one, multinationals will have the confidence to make investments in the country knowing that the forex market of the country is transport (Dothan, Ramamurti & Ulman, 1996). The move will also see multinationals that have already invested in the country produce and sell more to foreign markets and remit their earnings to their mother countries. In essence, the change adopted by NBB will encourage foreign direct investment and will boost their exports. Office for a Democratic Belarus (2011). Exchange Rate Restrictions Lifted in Interbank Market. Retrieved March 14, 2014 from