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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.