Currency in investment arbitration
Produced in partnership with Stephenson Harwood
Currency in investment arbitration

The following Arbitration guidance note Produced in partnership with Stephenson Harwood provides comprehensive and up to date legal information covering:

  • Currency in investment arbitration
  • Currency in International Centre for Settlement of Investment Disputes (ICSID) arbitration proceedings
  • Binding and non-binding international instruments

One consequence of the international nature of arbitration is the variety of currencies with which parties and tribunals have to deal, often in the same proceedings, where claims may be made (and are often awarded) in various currencies.

For more general information about currency in arbitration, see Practice Note: Currency in arbitration.

Currency in International Centre for Settlement of Investment Disputes (ICSID) arbitration proceedings

Arbitral tribunals in investment arbitrations often have to deal with choice of currency issues, mainly in relation to the fluctuations of the host state’s currency in which the investment was made and damages suffered and/or the non-exchangeable nature of certain currencies.

The following cases give examples of how the tribunals in International Centre for Settlement of Investment Disputes (ICSID) arbitrations have dealt with these issues.

In Siemens AG v Argentine Republic (ICSID Case No ARB/02/8), the tribunal ruled that compensation should be ordered in US Dollars, and not the currency of the contract, which was Argentine pesos. It was argued that the contract did not guarantee Siemens parity between the peso and dollar. The tribunal noted that:

'...it has to be considered in the context of the requirement that the consequences of the illegal act be wiped out. It would be hardly so if the parity of the currency would be added as yet another risk to be taken by