Currency Inconvertibility

Currency inconvertibility coverage compensates investors if new currency restrictions, or other government action or inaction, prevent the conversion or transfer of investment returns from insured investments. Currency restrictions may take the form of new, more restrictive foreign exchange regulations or a failure by exchange control authorities to act on an application for hard currency.

OPIC inconvertibility coverage may insure earnings, returns of capital, principal and interest payments, technical assistance fees, and similar remittances on insured investments.

OPIC inconvertibility coverage does not protect against the devaluation of a country’s currency. Rather, OPIC insures investors against deterioration of their ability to convert local currency or transfer dollars from the project country through any legal exchange mechanism sanctioned by the central government of the project country.