"It is possible to travel abroad for free due to this exchange rate magic," said local economist Angel Garcia Banchs. The profit is realized from an arbitrage process known locally as "el raspao," or "the scrape." Credit cards are used abroad to get a cash advance -- rather than buying merchandise. The dollars are then carried back into Venezuela and sold on the black market for some seven times the original exchange rate. The large profit margin easily absorbs the cost of flights and accommodation for a trip.
Posted on: Tue, 24 Sep 2013 17:35:22 +0000