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In Some Developing Countries and in Some Former Communist Countries

question 268

Essay

In some developing countries and in some former Communist countries, people exchange their domestic currencies for foreign currencies such as the dollar in black markets. Why would this practice go on?


Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

American Truck

Typically refers to trucks manufactured by companies based in the United States, known for their size and power.

EU

The European Union, a politico-economic union of 27 member states that are located primarily in Europe.

Euros

The European Union's official currency, used by 19 of the 28 EU member countries, known collectively as the Eurozone.

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