Nominal assets play a major role in previous terminternational financial markets, while trade in indexed bonds is limited. As a result, agents are exposed to both price and exchange rate uncertainty. Nonetheless, previous research on net capital flows has assumed the presence of a risk-free vehicle to intertemporal asset trade. In this paper we develop a general equilibrium intertemporal model with trade limited to nominal bonds and equity. We find that exposure to nominal risk dampens net capital flows, thus making economies effectively more closed.