Capital controls are rules put in place by governments to control the flow of money into and out of their country. It's like having your parents tell you that you can't spend all of your allowance on toys without asking them first. Governments use capital controls to try to keep the economy stable and protect their country's currency from losing value too quickly.
Think of it like a big, imaginary fence around a country. The fence doesn't let money leave the country too quickly and also limits how much money can come in. That way, the country can control how much money is available to be spent and invested, which can help prevent big economic problems like inflation or recession.
But these controls can also make it harder for people and businesses to move their money around, which can be tricky if you want to invest in companies in other countries or take your money out of your bank account and move it somewhere else.
So, basically, capital controls are like a set of rules to make sure money stays safe inside the country and doesn't cause trouble, but it might make it harder for you to use your own money the way you want to.