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A Currency Bet Nearly as Certain as Cartel Profits

From bloomberg.com

There’s a way to make a quick profit thanks to Mexico’s drug cartels. And it’s perfectly legal. It’s a currency trade, of all things, available every day inside Mexico City’s airport, where there’s a gap of about 3 percent between rates offered at dedicated exchange houses and local banks. Dollars bought cheaply from the currency dealers can be deposited at bank windows just a few feet away for a higher rate. The airport trade is a weird bit of arbitrage created by the unintended consequences of efforts to combat narcotics trafficking in the U.S. and Mexico. Regulations aimed at curbing money laundering have made it ... (full story)

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  • Category: Breaking News