# What are capital controls, and which countries have used them?

Capital controls are government limits on moving money into or out of a country, or on converting it to other currencies. Argentina in 2001, Iceland from 2008, Cyprus in 2013 and Ukraine in 2015 all used them during crises.

Capital controls are rules that limit how money crosses borders. They can cap cash withdrawals, block transfers abroad, or restrict buying foreign currency.

Governments usually impose them in a crisis to stop money from leaving the banking system. They can also be used to slow sudden inflows, as Iceland did with a reserve requirement in 2016.

Iceland imposed controls in 2008 after its banking system collapsed. Major easing came in March 2017, and some holdouts stayed restricted until early 2019, according to a 2020 IMF Independent Evaluation Office paper.

Cyprus capped individual cash withdrawals at 300 euros per day per bank in March 2013, and card payments abroad at 5,000 euros a month. The controls were fully removed about two years later. Ukraine introduced strict controls in February 2015, then eased them over time.

Argentina introduced capital controls and a partial deposit freeze in December 2001, per the IMF Independent Evaluation Office (2004). The common lesson is that controls can arrive with little notice and can last for years.

## Sources

- [IMF Advice on Crisis-Driven Capital Controls in Europe](https://ieo.imf.org/-/media/IEO/Files/evaluations/completed/09-30-2020-imf-advice-on-capital-flows/cfm-bp10-imf-advice-on-crisis-driven-capital-controls-in-europe-v2.ashx), IMF Independent Evaluation Office
- [Report on the Evaluation of the Role of the IMF in Argentina, 1991 to 2001](https://ieo.imf.org/-/media/IEO/Files/evaluations/completed/07-28-2004-report-on-the-evaluation-of-the-role-of-the-imf-in-argentina-1991-2001/07292004report.ashx), IMF Independent Evaluation Office

Facts checked 2026-10-08. Next review by 2027-10-08. Written and reviewed by Todd Allyn, Sovereo Intelligence Research. Canonical page: https://www.sovereo.com/answers/what-are-capital-controls-and-which-countries-have-used-them/
Educational research, not legal, tax, immigration or financial advice.