If, after an obligation is expressed or a loss is incurred in a foreign money, the country issuing or adopting that money substitutes a new money in place of that money, the obligation or the loss is treated as if expressed or incurred in the new money at the rate of conversion the issuing country establishes for the payment of like obligations or losses denominated in the former money. If such substitution occurs after a judgment or award is entered on a foreign-money claim, the court or arbitrator shall amend the judgment or award by a like conversion of the former money.
§ 8.01-465.25.Effect of substitution of currency by issuing authority.
Chapter 17.3. Uniform Foreign-money Claims Act · Last amended 1991 · Last verified July 16, 2026
In one sentenceThis section handles currency redenomination — if the foreign country that issued the relevant money later replaces it with a new currency, the obligation or loss is treated as stated in the new money at the country's own official conversion rate, and if that happens after judgment, the court or arbitrator must amend the judgment to match.
Full Text of § 8.01-465.25
Plain-English Summary
Currencies sometimes disappear. A country may retire its old money and adopt a new one, leaving obligations expressed in a currency that no longer exists. This section keeps that kind of change from disrupting a foreign-money claim. If, after an obligation is expressed or a loss is incurred in a foreign money, the issuing country substitutes a new money in its place, the obligation or loss is treated as if it had been expressed or incurred in the new money instead.
The conversion does not depend on market guesswork. It follows the rate of conversion the issuing country itself establishes for paying like obligations or losses denominated in the former money — the same official rate the country uses for its own transition, not a rate a Virginia court or arbitrator would otherwise pick.
If the substitution happens after a judgment or award has already been entered on the foreign-money claim, the obligation to update the judgment is not optional. The court or arbitrator “shall amend” the judgment or award by a like conversion of the former money, keeping the judgment aligned with whatever currency now exists.
Frequently Asked Questions
What triggers this section?
A foreign country substituting a new money in place of the money in which an obligation or loss was originally expressed or incurred.
At what rate is the obligation or loss converted to the new money?
The rate of conversion the issuing country establishes for the payment of like obligations or losses denominated in the former money.
What happens if the currency substitution occurs after a judgment or award has already been entered?
The court or arbitrator must amend the judgment or award by a like conversion of the former money.
Does this section let a court or arbitrator pick its own conversion rate for the substitution?
No, the conversion follows “the rate of conversion the issuing country establishes,” not a rate the court or arbitrator selects.
Is amending the judgment after a currency substitution discretionary?
No, the statute says the court or arbitrator “shall amend” the judgment or award, a mandatory duty.
Amendment History
1991, c. 24.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as: currency redenomination and a foreign money judgment virginianew currency replaces old currency judgment virginiaissuing country substitutes currency judgment amendmentamending a judgment after a currency change virginia