How to flow in hot money and how to flow out
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How to flow in hot money and how to flow out
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Hot Money/Refugee Capital, also known as tourism or speculative short -term capital, only to pursue the highest risk in the international financial market with short -term speculative funds in the international financial market.
The so -called hot money outflow is to sell its currency denomination assets, such as stocks, national debt, speculative land owned by foreign capital, etc., and they are sold in large quantities.
Is when speculators expect that a certain currency price will fall, it will sell the long -term foreign exchange of this currency, so that after the future expires, it can be bought at a lower period of time. The interests of the exchange difference.
The international hot money, flowing to two heat sources:
1. Short -term interest rate is at the height of the band, or it is still rising
2. Appreciate
Find an agent or agent unit in the country, and you can come in in the name of a joint venture. If you go out, you only need to exist the money from foreign banks.
If you can make money, he will come (even if the difference at the exchange rate)
This can't earn money (expected), or it is too difficult to make money (government supervision)