The risk that the borrower will not be able to convert local currency into foreign exchange, therefore being unable to make the due debt-service payments. Such risk typically arises from currency exchange restrictions imposed by the government of the borrower's country. This is a particular kind of political risk. Français: Risque de transfert Español: Riesgo de transferencia
Risk incurred by the seller of goods that, due to the fact that his country has a negative balance of payments, no foreign exchange (US dollars or other "hard" currency) may be available to the buyer when he is ready to pay for the goods.
The risk associated with converting a local foreign currency into U.S. dollars.
A financial term denoting a risk that a lender may assume in lending to a foreign borrower. The risk represents the use of exchange controls in the foreign country that will prevent the borrower from transferring funds out of the country.
The risk of loss in an international transaction when a payment due is delayed, restricted or prevented by law of decree in either of the countries concerned / In credit insurance the risk that a debtor though able and willing to pay is unable to transfer the money.
The risk that funds cannot be transferred or paid from a particular territory usually because of political circumstances or lack of foreign exchange.
The risk involved with undertaking cross-border transactions i.e. the risk of being subject to difficulties or restrictions.
The risk of an entity being unable to settle either temporarily or permanently amounts due to a cross-boarder creditor as a result of actions by the government or other regulatory authority of the country where the entity is resident.
