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Dual Exchange Rate

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Dictionary Says

Definition of 'Dual Exchange Rate'

A situation in which there is a fixed official exchange rate and an illegal market-determined parallel exchange rate. The different exchange rates are used in different situations, either in exchanges or evaluations, as mandated by the government.
Investopedia Says

Investopedia explains 'Dual Exchange Rate'

Argentina adopted a dual exchange rate following its catastrophic economic troubles in the beginning of 2002. The illegal market-determined exchange rate would be preferred in a situation such as a cost-benefit analysis conducted on behalf of the Argentinian government.

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