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10 Monetary Transfers and Treatment

From: The Law of Investment Treaties (3rd Edition)

Jeswald W. Salacuse

From: Oxford Public International Law (http://opil.ouplaw.com). (c) Oxford University Press, 2021. All Rights Reserved.date: 17 June 2021

International investment law — Exchange controls — Law of treaties — Arbitration

This chapter describes the treatment accorded to monetary transfers by investment treaties. Nearly all investment treaties grant covered investors or investments the freedom to make monetary transfers. However, the precise nature of such provisions in particular treaties depends upon the differing interests of host country governments. While investors want broad and unrestricted guarantees on monetary transfers, host states seek, in varying degrees, to limit their commitments with respect to monetary transfers and to subject them to qualifications and exceptions. Although the provisions on monetary transfers vary from treaty to treaty, they all tend to address six basic issues: (1) the general scope of the investor's rights to make monetary transfers; (2) the types of payments that are covered by such rights; (3) the nature of the currency in which payments may be made; (4) the applicable exchange rate; (5) the time within which the host state must allow the investor to make transfers; and (6) exceptions to the right to make monetary transfers.

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