capital outflow

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Capital Outflow

A situation in which money leaves an economy at an extremely high rate. That is, capital outflow occurs when economic actors liquidate their investments and deposit their capital in another economy. Capital outflow is generally indicative of a larger problem, such as a weakening currency. It is most common in developing countries and is considered a highly negative event.

capital outflow

a movement of funds out of a particular country into one or more foreign countries, representing, on the one hand, investments by individuals, companies and institutions and by government in foreign physical assets and financial securities, and on the other hand, the provision of borrowing facilities and loans to foreigners. See CAPITAL INFLOW, FOREIGN INVESTMENT, FOREIGN DIRECT INVESTMENT, BALANCE OF PAYMENTS.

capital outflow

a movement of domestic funds abroad, representing either the purchase of foreign FINANCIAL SECURITIES and physical ASSETS by domestic residents or the BORROWING of domestic funds by foreigners. See CAPITAL INFLOW, BALANCE OF PAYMENTS, FOREIGN INVESTMENT, HOT MONEY.
References in periodicals archive ?
Summary: China's foreign exchange reserves have dropped for four straight quarters, leading to a fresh round of warnings about capital outflows.
Prudential's Hong Kong operation has been a beneficiary of capital outflows from China and has been a key driver of the recent growth of the Asian business.
It is expected that the tools will replace foreign-exchange purchases as a liquidity management tool, amid persistent capital outflows.
During the same month, foreign exchange reserves fell to their lowest in nearly three years, with analysts blaming ``record" capital outflows on expectations that the yuan will depreciate.
The illegal capital outflows stem from tax evasion, crime, corruption and other illicit activity, the report said, according to which a record $1.
This has led to capital outflows and a sharp depreciation of the exchange rate since mid 2013.
We have been below South Africa before, but by not more than 50 basis points and the capital outflows have not been that significant.
Second, they maintained relatively low foreign currency reserves, which act as buffers to absorb capital outflows.
Cyprus MPs undecided whether to release list with capital outflows *
The central bank has tried to use short-term policy tools to inject more liquidity, but such tools were not enough, so it has to cut RRR," said Wen Bin, senior economist at Minsheng Bank in Beijing, adding that signs of increasing capital outflows and a sliding domestic currency were particularly worrying.
Rupee bounces back Ignoring heavy capital outflows and firm dollar overseas, the rupee bounced back -- off from four-month low logged last Friday -- by 25 paise to close at 60.
Generally, the strong dollar tempers capital flows into Dubai aACA* (while) weaker currencies create relative value in foreign markets and encourage capital outflows from Dubai," according to Phidar.