Capital Transfer Restrictions under Modern Investment Treaties

Abstract

This chapter examines the restrictions on capital transfer in modern investment treaties. It suggests that capital transfer restrictions have been used as a means of regulating foreign investment, however, the power of the host state to impose capital transfer restrictions is constrained by general international law and modern investment treaties in order to prevent or minimize abuse of the right, and protect the interests of foreign investors. It discusses the criteria used to evaluate the legality of exchange restriction measures.