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Transfer Risk

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Transfer risk
The risk associated with the possibility of a currency not being able to be sent out of the country, usually due to central bank restrictions or a national debt rescheduling.
Transfer Risk
In international trade, the risk that a transaction cannot take place because a government or central bank will not allow currency to leave a country. For example, a government may theoretically declare that its currency is inconvertible, disallowing a transaction. Alternatively, a government may restructure its national debt service in such a way that it affects transfers of currency out of the country. See also: Political risk.


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