Click on a label to read posts from that part of the world.
Venezuela Exchange Rate Magic Brings Free Flights, Cash Payday
In Venezuela, the disparity between the official and black-market rates for the local bolivar currency is insane. It sells on the illegal market at about seven times the government price of 6.3 to the dollar. To compound the problem, there are strict limits on the availability of dollars at the 6.3 rate.
But a special currency provision for travelers with a valid airline ticket allows Venezuelans to exchange up to $3,000 at the government rate. The result has sold out planes flying half full, tickets bought by Venezuelans who had no intention of traveling. Others are exchanging currency, easily paying for their travel via the financial gain afforded by the special travel provision.
Better yet, those actually flying take credit cards abroad to get a cash advance, bringing back dollars to sell on the black market for about seven times the original exchange rate.