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Black Market Peso Exchange Expands to China

By Valentina Pasquali

Wealthy Chinese nationals are buying illicit U.S. dollars from Latin American drug traffickers to skirt their country's increasingly strict controls against capital flight, say sources. Chinese individuals are already prevented by the government in Beijing from purchasing foreign currency in excess of $50,000 per year, and, beginning this year, must pledge in writing that any renminbi they exchange will not be used to buy overseas property, securities or insurance. Those still determined to bring their wealth to the United States and Canada are turning to black-market money brokers and ledger-based transactions to acquire U.S. dollars from drug traffickers in Mexico,...

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