Liberalising outdated exchange controls will pay dividends
There is something of Winnie the Pooh’s friend Tigger in the new exchange control system. In theory it lets you do anything you like with your money — except for a list of specific transactions
Anyone who has read AA Milne's Winnie the Pooh books might remember Tigger, who eats anything. Anything, that is, except thistles. And “haycorns”. And “hunny”.
This week's budget in effect abolished the last vestiges of the exchange control system originally introduced almost 80 years ago. The old system of negative control — which banned you from moving money across borders unless you had specific permission — has been replaced with a new positive philosophy of capital flow management.