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 ?
The ringgit has tumbled over 20 per cent this year on capital outflow, weakened demand for its commodities and political volatility.
The current capital outflow episode in China is a more sustained and severe episode relative to those seen in the past," they wrote.
The National Bank of the Republic of Macedonia (NBRM) is taking precautions of temporary nature in case of more prominent capital outflow from the Republic of Macedonia to Greece that could seriously upset the balance of payments and the stability of the financial system.
Lagarde also warned of a repeat of high market volatility and capital outflow when the US Fed hikes rates next time and asked India and other emerging markets to be prepared for such an eventuality.
Contrary to consensus opinion, the Bank of Namibia said it is of the opinion that the parity in interest rates poses no capital outflow risk to the Namibian economy.
To refute allegations and information on capital outflow from Serbia presented by some media, the NBS informs the public that both the pace and volume of capital withdrawal by foreign banks in Serbia declined in the first half of 2013 relative to the same period last year.
KEFEA sent a letter addressed to Central Bank governor Panicos Demetriades, and health minister Petros Petrides asking them to exempt medicines from restrictive measures in place to control capital outflow.
According to the deputy minister of economic development Andrey Klepach, capital outflow from Russia may exceed the earlier announced forecast of $10 billion.
As a result, Taiwan experienced the ninth consecutive quarterly capital outflow of US$8.
Nor was there any debate over concerns that the new tax may shake the bank system foundations due to capital outflow.
China saw net capital outflow in October 2011 for the first time in four years.