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:
“All money nowadays seems to be produced with a natural homing instinct for the Treasury.”
—Prince Philip (b. 1921)
“So long as the system of competition in the production and exchange of the means of life goes on, the degradation of the arts will go on; and if that system is to last for ever, then art is doomed, and will surely die; that is to say, civilization will die.”
—William Morris (1834–1896)
“The poets were not alone in sanctioning myths, for long before the poets the states and the lawmakers had sanctioned them as a useful expedient.... They needed to control the people by superstitious fears, and these cannot be aroused without myths and marvels.”
—Strabo (c. 58 B.C.–c. 24 A.D., Greek geographer. Geographia, bk. 1, sct. 2, subsct. 8.