capital outflow


Also found in: Wikipedia.

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 ?
In an emailed response to Bloomberg, Professor Global Development Policy at Boston University, Kevin Gallagher said China came across a sudden capital outflow in late 2016 and early 2017 due to a mix of premature capital liberalization and external conditions.
com in Turkey, which would've prevented the capital outflow.
However, legal entities intending to make investments exceeding USD 50,000 will be required to submitan exhaustive list of supporting documents that will help the NBU prevent attempts to use licenses for FX operations for capital outflow schemes.
Policy rate adjustments will help neutralize the (US) Fed rate hike on the interest rate differential between onshore and offshore, thus slowing the pace of capital outflow-As China continues to face significant capital outflow, onshore credit conditions will tighten further and put pressure on onshore interest rates.
China's capital outflow could accelerate further in coming months as the yuan depreciates and investors gain concerns about a strengthening dollar.
That might help to ease investor fears of a capital outflow that might limit the central bank's options for countering the slowdown.
ySTANBUL (CyHAN)- Turkey is among the countries that are most sensitive to potentially high capital outflow from emerging markets (EMs) in 2016, the Washington-based Institute of International Finance (IFF) said in a statement on Wednesday.
Summary: A report revealed that illicit financial practices by Lebanese firms are rife and estimated the illegal capital outflow at around $2 billion a year.
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.