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:
“Among the Very Rich you will never find a really generous man, even by accident. They may give their money away, but they will never give themselves away; they are egoistic, secretive, dry as old bones. To be smart enough to get all that money you must be dull enough to want it.”
—Gilbert Keith Chesterton (1874–1936)
“I live in my house as I live inside my skin: I know more beautiful, more ample, more sturdy and more picturesque skins: but it would seem to me unnatural to exchange them for mine.”
—Primo Levi (1919–1987)
“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)