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:
“It’s complicated, being an American,
Having the money and the bad conscience, both at the same time.
Perhaps, after all, this is not the right subject for a poem.”
—Louis Simpson (b. 1923)
“Superfluous wealth can buy superfluities only. Money is not required to buy one necessary of the soul.”
—Henry David Thoreau (1817–1862)
“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)
“Grown-up people do very little and say a great deal.... Toddlers say very little and do a great deal.... With a toddler you cannot explain, you have to show. You cannot send, you have to take. You cannot control with words, you have to use your body.”
—Penelope Leach (20th century)