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Is arbitrage good or bad for the foreign exchange market?
Not good. Arbitrage will change the market demand of different funds, but the interest rates of short-term funds in different places tend to be the same, which will narrow the gap between the flag exchange rate and the forward exchange rate in the foreign exchange market, lead to the large-scale international flow of short-term capital and the turmoil in the furniture international financial market, so arbitrage is not good for the foreign exchange market.