The term is applied in two situations. A foreign investor repatriates received dividends, coupons, or proceeds from asset sales by converting and transferring them abroad. An exporter repatriates foreign currency earnings from foreign trade operations by returning them to the country.
The ability to transfer income without obstacles is one of the key conditions for foreign investment. Formal market accessibility matters little if earned profits are difficult to convert and withdraw, so the repatriation regime affects the assessment of country risk as much as instrument returns.
The procedure is regulated within the framework of currency control: requirements are established for documentary confirmation of the origin of funds, timeframes, and permissible grounds for transfers.
For domestic investors, the significance is indirect but real: repatriation conditions affect non-residents' willingness to participate in placements and in the secondary market, and through this, on instrument liquidity and prices at which transactions can be made.