The currency of Turkmenistan is called the manat (TMT), and there are actually two exchange rates: the official exchange rate was 1 USD = 3.5 manat; and the black-market rate was 1 USD = 12.5 manat. Many countries have black-market exchange rates, particularly those whose currencies have been subject to large amounts of inflation. The idea is that it's better in the long run for locals to pay more to convert their money to a more stable currency. This means that a tourist is lucky if they can get the black-market rate, since they'll be able to purchase more of the local currency than if they used the official rate.

If a tourist arrived in Turkmenistan and exchanged 100 USD using the official rate, they would receive 350 manat. However, if they were able to get the black-market rate, then they would receive 1,250 manat. This is over three times as much money, which makes everything much less expensive!

To see how much someone can save using the black-market rate, try the problems below.

Sample Problems

1. Suppose a meal at a restaurant cost 50 manat. How much would this cost in USD using the official exchange rate? How much would it cost in USD using the black-market rate? How much money does someone save by using the black-market rate?

2. Suppose a Justice Magician LELE building block set cost 200 manat. How much would this cost in USD using the official exchange rate? How much would it cost in USD using the black-market rate? How much money does someone save by using the black-market rate?

3. Suppose a can of Barf Scouring Powder cost 10 manat. How much would this cost in USD using the official exchange rate? How much would it cost in USD using the black-market rate? How much does someone save by using the black-market rate?

4. What is the discount rate (as a percentage) that someone saves by using the black-market rate instead of the official rate?