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:
“Those who have money go abroad in the world, but those who have no suitable clothes are reluctant to do so.”
—Chinese proverb.
“Development, it turns out, occurs through this process of progressively more complex exchange between a child and somebody else—especially somebody who’s crazy about that child.”
—Urie Bronfenbrenner (b. 1917)
“The glance is natural magic. The mysterious communication established across a house between two entire strangers, moves all the springs of wonder. The communication by the glance is in the greatest part not subject to the control of the will. It is the bodily symbol of identity with nature. We look into the eyes to know if this other form is another self, and the eyes will not lie, but make a faithful confession what inhabitant is there.”
—Ralph Waldo Emerson (1803–1882)