When Arbitrage Doesn't Work

Narrator: The sellers are trying to save the situation and are even playing into each others hands. In Kyivs Podil, side by side there are two currency exchange outlets of different commercial banks. In one, they buy the dollar at Hr. 6.65, in the other they sell the dollar at Hr. 6.45. But the thing is, in the cheap kiosk you can only sell the dollar at Hr. 6.15, while in the expensive one you can only buy the dollar at Hr. 6.95. Vikna did an experiment: We bought 10 dollars at Hr. 6.95, and a few minutes later, in that same place, we tried to sell it at Hr. 6.65. Still, once again, the kiosk didnt have even 70 hryvnias in store for us.

Reporter [edited for clarity]: You should at least have enough hryvnia for 10 dollars, right?

Kiosk manager: [struck speechless, produces a you got me smile while chewing gum]

Reporter: I just sold you 10
Kiosk manager: Yes, you did

Reporter: I just bought 10 dollars from you, so you should have something in the way of hryvnia for that 10 dollars, right?
Kiosk manager: Well, I do.

Reporter: Then why did youwhy didnt you take the dollars from this man?
Kiosk manager: [gives a guilty look]

Video uploaded from: http://censor.net.ua/go/offer/ResourceID/100955.html
Original source: http://www.stb.ua

Category:

News & Politics

Tags:

• Ukraine
• hryvnia