Transfer risk

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.