Often, foreign exchange controls can result in the creation of black markets to exchange the weaker currency for stronger currencies. This leads to a situation where the exchange rate for the foreign currency is much higher than the rate set by the government, and therefore creates a shadow currency exchange market. As such, it is unclear whether governments have the ability to enact effective exchange controls.[1]
Context: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.
Question: Which trader would most likely be engaged in black market trading, trader A or trader B?