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 ?
This fall in investments is attributable to Beijing's clampdown on capital outflows, investigation of companies like HNA Group and Anbang Insurance Group which expanded quickly abroad.
Global Banking News-February 8, 2018--Central bank governor says Philippines has enough buffers to withstand capital outflows
The Philippines has drawn kudos and inflows as one of Asia's fastest growing economies, but some economic indicators raise a question of whether it could be a soft spot if US interest rate hikes spur capital outflows from Asia this year.
These moves will make it easier for legal entities to perform foreign trade activities while preventing unproductive capital outflows abroad.
in Hong Kong, came Monday, just days after Goldman Sachs Group warned China's capital outflows are accelerating, with $69.
Taking these two together, major capital outflows from emerging markets back to the US is highly expected in the coming months,' the brokerage said.
Park Hyung-min, an economist at Shinhan Investment, said that the rate hikes would further fuel capital outflows and currency volatility, which would negatively affect the economy.
8232;Net capital outflows, measured by portfolio and other investments flows, were down to US$ 2.
We believe the authorities can live with capital outflows as long as foreign reserves stay above $3 trillion, which implies monthly declines of around $20 billion," ING said in a report.
Worries flared over China's currency valuation, credit risks and capital outflows, contributing to the MSCI World Index dropping as much as 10 percent in January, while Brent crude oil plunged as much as 25 percent at one point during the month.
The real worry, however, is not just falling commodity prices, but also massive capital outflows.
China, for example, used nearly $500bn of its reserves in 2015 to fight capital outflows and prevent the renminbi's sharp depreciation; but it still has more than $3tn in reserves.