Some countries may implement capital controls to help stabilize their exchange rate, maintain macroeconomic & financial stability. Capital controls are policy tools to help control volatile movements in capital flows in and out of a country's financial system. There are generally two main types of capital controls in use: direct/administrative and indirect/market-based controls. Both of these area's each have several instruments available to help control capital flows. An example/illustration of some type of capital controls include: prohibition of certain capital transactions, administrative controls on the banking system to help control flows, dual or multiple exchange rate systems, explicit tax on capital inflows “entrance tax” on certain foreign exchange transactions & foreign loans - usually in the form of a uniform levy on all foreign exchange transactions to discourage short term speculative position taking in foreign currency, indirect taxation of cross-border flows - in the form of non-interest bearing compulsory reserve/deposit requirements, indirect regulatory controls - net external position of commercial banks.