capital flight

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Capital flight

The transfer of capital abroad in response to fears of political risk.

Capital Flight

A situation in which foreign investors remove their investments from a particular country because of some increase in country risk. Capital flight may occur because of government instability, the sudden appearance of high inflation, or because another country's government offers a better deal. Governments almost always try to prevent capital flight from occurring, but this is not always possible. See also: Foreign direct investment.

capital flight

The shifting of funds out of a country to avoid confiscation, controls, or depreciation. Capital flight results in further deterioration of a currency's exchange rate.
References in periodicals archive ?
In a statement issued here, the LCCI President Engineer Sohail Lashari said that the said SRO would compel the businessmen to stay away from banks or maintain accounts out of this country, which would result in flight of capital.
Hitting out at the Congress on corruption which, he said, touched an all- time high, the BJP leader highlighted the 2G spectrum allocation, coal block allocation, Commonwealth Games and VVIP chopper scams which " brought down the image of the country, leading to decline on investment and flight of capital.
This flight of capital caused a temporary liquidity crunch, he added.
Possibility of cascade effects could lead to the destabilization of the still fragile- European financial sector at large and the flight of capital from the EU as a whole, hence the transformation of the Eurozone into a toxic zone for global assets.
The rupee has been hit by a flight of capital due to a weak economy and fears that US policymakers will pare a stimulus package that has triggered vast investor flows to emerging markets.
Ramez however said that speculation about a massive flight of capital from Egypt "is way too much exaggerated".
Summary: TEHRAN (FNA)- The Russian government will not aid businesses that have lost money in Cyprus, First Deputy Prime Minister Igor Shuvalov said, underscoring Moscow's resolve to clamp down on the flight of capital to offshore financial centers.
Even with banks now open, they face a regime of strict restrictions designed to halt a flight of capital from the island.
Majid bin Mohammed al-Kiyoumi, the specialist in the Office of the MSM Deputy Chairman for Legislation and Development presented a working paper entitled "investment and stock markets" during which he defined stock markets (stock exchanges) and its importance in providing investment opportunities for individual savings and encouraging those individual to use these opportunities , providing investment opportunities for surplus liquidity or unused funds of companies and assisting in the establishment of new companies to reduce the flight of capital abroad and support financial market in the Sultanate.
What's more, such a gap normally promotes a flight of capital from a country.
He added that priority for attracting investment capitals must remain focused on Arab countries and, proposed measures and mechanisms designed to avoid respective money transactions' attrition including a potentially-harmful flight of capital abroad.
The conditions were worsened by a continuous flight of capital from the country after the Jan.