A foreign exchange certificate, sometimes abbreviated to FEC, is a tool for foreign exchange control in countries where the national currency is subject to exchange controls or is not convertible. A certificate for purchasing foreign forex certificate at a specified rate, often for a specified purpose, such as financing imports. This type of certificates were required in many European countries after World War II.
A certificate denominated in local currency, which foreign citizens are required to use for some or all of their purchases. The exchange rate may be more favourable for the visitor than the official commercial rate. The purpose is to channel the foreign exchange to the state coffers instead of the black market. A certificate denominated in foreign currency, to which local citizens are required to exchange any foreign currency they manage to get possession of. These certificates may be accepted as payment in specific stores, which otherwise sell goods only to foreign citizens in exchange for foreign currency.
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