18 Limitations of covered interest arbitrage.

Assume that the one-year UK interest rate is 11%, while the one-year interest rate in Malaysia is 40%.

Assume that a UK bank is willing to purchase the currency of that country from you one year from now at a discount of 13%. Would covered interest arbitrage be worth considering? Is there any reason why you should not attempt covered interest arbitrage in this situation? (Ignore tax effects.)