capital flight


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Related to capital flight: Human capital flight

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 ?
Foreign trade being carried out by apparently reputable firms with the government's blessing became the easiest gate-way for un-told billions in capital flight.
Amid the financial instability in the country, Ukrainian courts have made unorthodox rulings that may further harm the domestic financial system and lead to capital flight.
Russia's central bank said that capital flight in the first quarter alone amounted to $50.
Policy-makers have only recently taken notice of this problem and decided to reverse capital flight that might be taking place through workers' remittances.
This practice basically rules out the possibility of massive capital flight that could destabilize China's financial system.
Both measures were designed to counter surging capital flight and bolster the central bank s foreign currency reserves, which Fernandez has earmarked for debt repayments next year.
Capital flight dramatically accelerates in the autumn
In August, economists said there was a slowdown in the rate of the decline which may now suggest the worst of the capital flight since the uprising to topple Hosni Mubarak was over.
Around 30 people died in a month of unrest which brought in Saudi troops, closed banks and shops and triggered capital flight.
But the decision may have helped avert a bigger capital flight.
Capital flight proves that some investors are not only disturbed but have lost faith in the economic policies, it said.