Part III The Principle of Nominalism, 13 Nominalism, Private International Law, and the Lex Monetae Principle

Subject(s):

Foreign currency systems and institutions — Revaluation and devaluation — Sterling — Nominalism — Monetary obligations

This chapter reflects on the role of the law of the currency (lex monetae) and a number of private international law questions. The law of the currency determines which chattels are legal tender of the currency referred to, to what extent they are legal tender, and how, in the case of a currency alteration, sums expressed in the former currency are to be converted into the new one. It must not be overlooked that, at least so far as English law is concerned, the nominalistic principle owes its existence to the law which governs the obligation, rather than to the lex monetae. But whatever the difficulties may be, it is submitted that the lex monetae principle enjoys almost universal support; it is also consistent with customary international law. The chapter then looks at the process of revalorization and its role in foreign courts.