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 and, money, exchange and/or control:
“With money and wine, you will have many friends, but when you are in trouble, will you see even one?”
—Chinese proverb.
“His hands make money outside; his spouse saves money at home.”
—Chinese proverb.
“The social kiss is an exchange of insincerity between two combatants on the field of social advancement. It places hygiene before affection and condescension before all else.”
—Sunday Correspondent (London, Aug. 12, 1990)
“The inability to control our children’s behavior feels the same as not being able to control it in ourselves. And the fact is that primitive behavior in children does unleash primitive behavior in mothers. That’s what frightens mothers most. For young children, even when out of control, do not have the power to destroy their mothers, but mothers who are out of control feel that they may destroy their children.”
—Elaine Heffner (20th century)