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No, entirely not. What would happen overnight is that the currency would plummet against all other currencies into Deuschemark territory, at which point there i
by lvs 8y ago
No, entirely not. What would happen overnight is that the currency would plummet against all other currencies into Deuschemark territory, at which point there is no import/export possible with that currency. This is not a simple problem to get oneself out of, dear random internet commenter, which is why you don't want to get into it in the first place. The spread between the official rate and the black market rate already reflects a shred of the drop that would occur if the currency floats.
- xigma 8y agoThe black market rate is the floating exchange rate. There isn't really much of an actual non-floating exchange going on. Forced black market trading makes the currency less valuable.
- lvs 8y agoYes, that was precisely my point. But there is a limit to how much currency can be floated on the black market. I was replying to someone who thought floating all of it would be a good idea.