Money and Exchange Control
See also: Fixed exchange rate, Dollarization, and Money launderingMost tax havens have a double monetary control system which distinguish residents from non-resident as well as foreign currency from the domestic one. In general, residents are subject to monetary controls but not non-residents. A company, belonging to a non-resident, when trading overseas is seen as non-resident in terms of exchange control.
It is possible for a foreigner to create a company in a tax haven to trade internationally; the company’s operations will not be subject to exchange controls as long as it uses foreign currency to trade outside the tax haven.
Tax havens usually have currency easily convertible or linked to an easily convertible currency. Most are convertible to US dollars, euro or to pounds sterling.
Read more about this topic: Tax Haven
Famous quotes containing the words money, exchange and/or control:
“There is no intrinsic worth in money but what is alterable with the times, and whether a guinea goes for twenty pounds or for a shilling, it is ... the labour of the poor and not the high and low value that is set on gold or silver, which all the comforts of life must arise from.”
—Bernard Mandeville (1670–1733)
“Even if you find yourself in a heated exchange with your toddler, it is better for your child to feel the heat rather than for him to feel you withdraw emotionally.... Active and emotional involvement between parent and child helps the child make the limits a part of himself.”
—Stanley I. Greenspan (20th century)
“I candidly confess that I have ever looked on Cuba as the most interesting addition which could ever be made to our system of States. The control which, with Florida, this island would give us over the Gulf of Mexico, and the countries and isthmus bordering on it, as well as all those whose waters flow into it, would fill up the measure of our political well-being.”
—Thomas Jefferson (1743–1826)