The black market means unlicensed money changers, trading in shops and markets or even on the street. You should think very carefully before using the black market and talk to your line manager.
- You are probably breaking the law.
- You will not have any official exchange receipts to show the authorities.
- The lack of receipts increases the risk of fraud by staff involved in the exchange. Case study
- Many organisations have a policy of not using the black market.
- Some donors specifically forbid such exchanges.
- The security risks are high.
It is sometimes difficult to find out if a money changer is operating legally. Some dealers may not have a licence but on the other hand the authorities may tolerate their activities. This is often referred to as a 'grey' market. The grey and black markets are also sometimes referred to as the 'parallel' market.
