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Arbitrage opportunity because of shitty economic policy
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Alright, this is my first post, so listen up.

My country has been suffering from rampant corruption and a shitty economy for thirty years thanks to the world's first mob-run "democracy". Our currency is pegged to the USD at an exchange rate of approx. 1500 CUR/USD (CUR being my country's currency).

Protesters closed all major roads and forced banks to close their doors for almost two weeks. After they opened, everyone naturally wanted to sell all their CUR for USD cause they're idiots and don't know what a fixed exchange rate is. The banks keep trading very close to the peg, but the currency exchange offices (or whatever they're called) all started trading like it was a floating exchange rate, so they trade approx 1600 CUR/USD.

Thanks to this sub and the expertise it has given me, I immediately see the opportunity and go down with my father to the bank where we take out every single dollar we have, trade them for CUR at the nearest office (literally right next to the bank) and then trade them back for USD at the bank. By my calculations, you can make almost 6% every time you go back and forth between the bank and the currency exchange office. But you can't do it more than once cause it will raise suspicions.

Just wanted to tell this story since it's pretty cool how you can make money off of a shitty economy.

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brick-and-mortar arbitrageur

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Posted
5 years ago