What Is a Black Market Exchange Rate? (Explained Simply)
A black market exchange rate is the price at which currencies are traded outside official government-controlled channels. It usually exists in countries with strict currency controls or limited access to foreign currency. Definition The black market (or parallel market) exchange rate is determined by supply and demand in informal markets – street exchanges, underground brokers, or peer-to-peer crypto trades. It is often significantly different from the official rate set by the central bank. ...