You cant exchange millions of dollars (but tbf you couldn’t do that easily in the best times), but people can exchange theirs money into euro and dollar for that rate (realistic limit is $10k/month, but there are legal ways to cricumvent that limit). To say “you cant actually exchange USD to RUB” is untrue.
I guess the argument is that if you can’t do it on a large scale, then it’s economically not that important. The market forces that would drive the price discovery of the exchange rate don’t work if you can’t trade freely.
You cant exchange millions of dollars (but tbf you couldn’t do that easily in the best times), but people can exchange theirs money into euro and dollar for that rate (realistic limit is $10k/month, but there are legal ways to cricumvent that limit). To say “you cant actually exchange USD to RUB” is untrue.
I guess the argument is that if you can’t do it on a large scale, then it’s economically not that important. The market forces that would drive the price discovery of the exchange rate don’t work if you can’t trade freely.
That is a valid, but still different argument. Exchange rate still exists for average Joe (or Ivan), it isn’t North Korea (yet?)