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)
“Ants are so much like human beings as to be an embarrassment. They farm fungi, raise aphids as livestock, launch armies into war, use chemical sprays to alarm and confuse enemies, capture slaves, engage in child labor, exchange information ceaselessly. They do everything but watch television.”
—Lewis Thomas (b. 1913)
“A “super person” is one who expects to manage a career, home, and family with complete ease, expecting to maintain a perfect job, a perfect marriage, a perfect house, and perfect control of the children.”
—Joyce Portner (late 20th century)