The guarantees are being provided against the risks of expropriation, transfer restriction and
inconvertibility, breach of contract, and war and civil disturbance, it stated.
Lekela), an existing MIGA client, is seeking MIGAs cover of its equity and shareholder loan investments for up to $107 million in the Taiba NDiaye Wind Farm ( Project ) against the risks of Expropriation, Transfer Restriction and
Inconvertibility, Breach of Contract, and War and Civil Disturbance.
Gold outflow at the beginning of the war resulted in
inconvertibility of the currency and was a challenge to Britain's goal to preserve London as the world's financial center.
Global Times (2010),
Inconvertibility constrains CAFTA trading in yuan, 04.
The products are created to help countries attract more investments and to promote domestic trade by providing insurance that mitigates against sovereign risks and specifically, currency
inconvertibility and exchange transfer, expropriation, trade embargoes, non-honouring of contracts and payment default risks among others.
A conservative fiscal policy since 1991, including
inconvertibility of its soum, has shielded its citizens from hyper-inflation which ravaged other FSU states, but the policy has diminished FDI.
The policy aims to cover businesses against political violence and unfavourable currency
inconvertibility.
Political risk factors include issues of currency volatility or
inconvertibility, regulation, taxation, fund transfer restrictions, changes in political leaders and even war.
Coverage can also be customized to cover a broad range of risks, including political violence, expropriation, currency
inconvertibility, nonpayment and contract frustration," according to the Marsh report.
Indeed, in "Hegemonic Currencies During the Crisis: The Dollar versus the Euro in a Cartalist Perspective" Fields and Vernengo indicate that, despite its progress, China will not easily overcome the dollar hegemony because of the
inconvertibility of its currency and its lack of development of financial markets, so that the dollar will still remain for a while as "the American currency, but the world's problema".
Brazil, Russia, India, China and South Africa are desperate to diversify away from dollars, but most of these BRICS countries have underlying currency problems, be it trust, historic devaluations, commodity declines or simply
inconvertibility.
Multi-country policies also signal that insureds are not "attempting to adversely select high-risk countries for coverage," Marsh writes in its report, and carriers can customize coverage to cover a broad range of risks, including political violence, expropriation, currency
inconvertibility, non-payment and contract frustration.
