This is very common in the developing world. As governments print money and cause high inflation they want to prevent, or at least significantly delay, citizens

This is very common in the developing world. As governments print money and cause high inflation they want to prevent, or at least significantly delay, citizens exchanging it for a more stable option. So, the governments add friction (limits, KYC equivalents or outright bans) and offer exchanges with less friction at a much lower rate. Check Argentina -- their "blue rate", used by hotels and other cash-based businesses on site, is often twice as favorable as the official rate that you get with plastic.