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:
“When a fellow says, it hain’t the money but the principle o’ the thing, it’s th’ money.”
—Kin Hubbard (F. [Frank] Mckinney Hubbard)
“Love is often nothing but a favorable exchange between two people who get the most of what they can expect, considering their value on the personality market.”
—Erich Fromm (1900–1980)
“Teenage boys, goaded by their surging hormones ... run in packs like the primal horde. They have only a brief season of exhilarating liberty between control by their mothers and control by their wives.”
—Camille Paglia (b. 1947)