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:
“Love is cheap. You can buy it anywhere. Lives are cheap. It’s money that’s dear. You have to work days and sit up nights thinking how to make money.”
—John Dos Passos (1896–1970)
“... the subjective viewpoint is the only one to use regarding a library. Your true library is a collection of the books you want. You may have deplorably poor taste or bad judgment. Never mind. Correct those traits before you exchange your books.”
—Carolyn Wells (1862–1942)
“... the black girls didn’t get these pills because their black ministers were up on the pulpit saying that birth control pills were black genocide. What I’m saying is that black men have exploited black women.... They didn’t want them to have any choice about their reproductive health. And if you can’t control your reproduction, you can’t control your life.”
—Joycelyn Elders (b. 1933)