Courtesy of Bruce Krasting.
Over a number of years I had professional involvement with two-tiered markets. I’m not sure I can remember them all. Spanish A and B Pesetas come to mind. There was a two-tiered French Franc for a bit. I think Belgium had two markets as well. South Africa was two-tiered for years; Venezuela and the Philippines the same. At one point or another, all of the countries in South America were two-tiered. One of the more famous two-tiered markets was the Russian Ruble.
My interest in two-tiers was that they were (generally) exploitable. The markets had these features:
– Tier (A) was priced controlled by the central bank. There were limits on who could access this rate, and for what purpose.
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