A Craigslist for Currency Markets


In Belarus, the government doesn’t allow trading of its ruble outside a narrow price range, which greatly overvalues the ruble— so there is a price floor on the ruble compared to the euro or dollar. Because of the floor, currency trading had dried up: who would want to sell foreign currencies for grossly overpriced Belarussian rubles?? 

A friend of one of my students has a website designed to overcome rigidities in this market, sort of a Craigslist for currency. People specify amounts willing to buy or sell, agree to trade at some price and arrange a meeting place (often one of the empty currency-trading booths!). When they meet, trade nominally occurs at the official price floor, making the transaction nominally legal; but the person selling rubles makes side payments to the buyer to lower the price sufficiently so that the trade actually takes place at the equilibrium price.

One more way in which technology helps markets circumvent imperfections and rigidities.

(HT to MK)


I'd be interested to know if had been anything similar for Venezuelan Bolivars when the country was operating under a dual exchange rate (one exchange rate for "essentials" and another for "luxuries").

Frontier Strategy Group

Companies producing in Turkey should anticipate lower exchange rate-adjusted costs through next year, while companies selling indirectly to the market should anticipate reduced buying power for dollar-denominated goods. Fahhan Ozcelik, FSG Expert Advisor, also recommends that MNCs operating in Turkey take advantage of the government’s planned incentives for local exporters. One way MNCs can do this is by partnering with local suppliers for semi-finished goods, especially in industries such as textiles, motor vehicles, and electrical machinery.


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