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What strategies protect investors from "capital entrapment" in frontier markets that impose sudden capital controls post-investment?

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Maryann 发表于 昨天 01:36 | 显示全部楼层 |阅读模式 打印 上一主题 下一主题
 
Frontier markets often impose capital controls to stem outflows—trapping investor funds . For example, if a Tanzanian government restricts foreign currency transfers after an infrastructure investment, investors can’t repatriate profits. How do firms plan for this? Do they structure deals to receive returns in local commodities (e.g., coffee) that can be exported and sold, or partner with local banks to secure offshore escrow accounts? I want to explore pre-investment hedging tactics and real-world examples of escaping capital entrapment without incurring heavy losses.


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