If the market exchange rate deviates from par, there is opportunity for arbitrage by exchanging the cheaper currency for gold, shipping the gold to the other country, converting the gold into the other currency, and converting the proceeds into the cheaper currency on the market.
-- Milton Friedman, Money Mischief
There are undoubtedly many arbitrage opportunities, where price transparency has failed to bring about price harmonisation.
-- Nunzio Quacquarelli, "Euro optimism", Guardian, May 28, 2002
