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Before arbitragers take action with respect to exchange rate differentials central bank approval must be obtained. loans to cover transactions must be obtained. a market

Before arbitragers take action with respect to exchange rate differentials

central bank approval must be obtained.

loans to cover transactions must be obtained.

a market differential of at least 1 must exist between two currencies.

a differential of as little as 1/16 of 1 may trigger action.

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