The borders between countries have become weaker under the global trading environment. While the firms are doing business around the world, the transportation of all sorts of resources, including human resources. Central governments always want great controls of their own borders; however, sometimes it may not worth restricting the borders to a greater extend when the benefits of tight border control are much smaller than the cost of applying tight border control.
Currently the tension between China and the US strengthens around the task of trade. Once both countries want to win the possibly coming trade war, they need to pay attention to the volumes of their exports and imports with each other, they also need to worry about the exchange rates, they need to look at the taxes received by their governments as well. These three factors all depend on the control on their currencies.
The control of currency means two things: the value of the currency and the exchanging of the currency with other currencies. The value of the currency could influence the prices of its own nation's exports and the imports from other nations and change the nation's trade position. The freedom degree of currency exchange could affect firms' tax efficiency strategies and less freedom of currency exchange policies often increase the collectable taxes from firms. Although countries are often believed to be supposed not to directly influence their currencies in the international Forex market and countries should increase the freedom of currency exchange over time, as China is signalling China is increasing the exchange freedom over time, there are so many factors that could be controlled by the governments and indirectly influence the value of currencies and the freedom of currency exchange.
Therefore, control of currency becomes one of the most important part of control of borders.
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