Black Market Exchange Rate

Black Market Exchange Rate

An exchange rate for a currency that differs from the official exchange rate set by a government. The black market exchange rate occurs when the official rate bears little or no relationship to the currency's actual value. Using the black market exchange rate can be a punishable offense in the country issuing the affected currency.
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In particular, the black market exchange rate has continued the appreciation that began with President Rouhani's election, falling from an average of 35,675 Iranian rials (Dh5.
The black market exchange rate exceeds the official rate by as much as 6%.
The greater availability of FX has almost eliminated the black market exchange rate, although FX shortages persist, hampering economic activity.
Here in Sudan my total monthly salary was 600 pounds," about $86 at the black market exchange rate.
Mayaleh said the black market exchange rate, which last month hit a record low of about 70 to the dollar, reflected attempts to destabilise Syria, where President Bashar al-Assad is trying to crush an 11-month-old uprising against his rule, the agency reported.
These new measures are aimed to cover the gaps between the official exchange rate and the black market exchange rate.
He stressed that the black market exchange rate isn't the real exchange rate and that the people who work in this field are deliberately inflating prices to take advantage of people and cause a state of worry in order to boost their business and profits, affirming that the Central Bank is capable of protecting the Syrian Pound and providing foreign currency.
The bank attributed black market inflation to shortages of hard currency that pushed the black market exchange rate to at least 90bnZimbabwe dollars for a single US dollar, compared to the official bank exchange of 20bn.
In the economic meltdown, the black market exchange rate for the US dollar broke the one million Zimbabwe dollar mark for the first time in late October.
The literature reviewed by Bahmani-Oskooee and Goswami (2005) reveals that PPP is supported more often when the black market exchange rate is used in the testing procedure.
A Golf from Germany costs the equivalent of N660,000 ($5,700) at a black market exchange rate, but shipping costs, import duties and other taxes double the price.
To this end, the study compares mean and autocorrelations of exchange rate forecast errors from black market exchange rate cases with those from official market exchange rate cases: