SERV GLOSSARY


Transfer risk

SERV defines Glossarytransfer risk as government or central bank currency measures that prevent the buyer from making a payment. The buyer in such cases may have deposited equivalent funds in local currency, but the central bank will not release the currency required. Along with Glossarytransfer risk, SERV also covers the risk that an official or legal prohibition on payments may prevent a foreign buyer from making a payment by the due date.