An unofficial market in goods or currencies, especially in a country with a controlled economy.
- Just as price controls on sugar, say, drive the sale of sugar underground or to the informal sector, so price controls on forex have driven it to the streets - the parallel market and the black market.
- You see goods and services are priced at the parallel market rate (black market) which is usually about double the official rate.
- The spread between the legal exchange rate and that prevailing in the informal street market produces strong incentives for the diversion of a variety of current-account receipts from legal channels to the parallel market.
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