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Replying to Avatar Lyn Alden

The official (basically pegged) Egyptian pound to dollar exchange rate is currently 31-to-1, but on the black market it's about double that.

People naturally try to arbitrage that difference, and so the country has to start enforcing capital controls in order to reduce the ways that the fake exchange rate can be arbitraged.

A vicious cycle that inevitably leads to major devaluation.

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hueso 1y ago

Here in Argentina we got to the point of having an "official" black market rate. That is: black market rate as (falsely) reported by government-approved mainstraim media.

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