10 Monetary Transfers and Treatment

Subject(s):

International monetary law — Specialized treaty frameworks — BITs (Bilateral Investment Treaties) — Investment

The ability of a foreign investor to make international monetary payments freely both into and out of a host country is crucial to the success of any foreign investment. Investors need to transfer funds into the host country in order to establish an investment, operate it, expand it, and support it during economic hard times. This chapter discusses special treatment standards relating to monetary transfers. Treaty provisions on monetary transfers often address six basic issues: the general scope of the investor’s rights to make monetary transfers; the types of payments that are covered by such right; the nature of the currency in which payments may be made; the applicable exchange rate; the time within which the host state must allow the investor to make transfers; and exceptions to the right to make monetary transfers.