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The chart above demonstrates the continuous cycle of the
Black Market Peso Exchange (BMPE). The cycle begins in the
lower left hand corner of the chart with the transportation
of cocaine and heroin from Colombia. After the drugs are sold
for U.S. currency, the cash is sold, at a discount, to a BMPE
broker. The broker acts as an underground banker by swapping
the trafficker dollars for Colombian pesos owned by "legitimate"
South American businessmen. The businessmen use these U.S.
dollars (usually converted to checks or wire transfers) to
buy large volumes of durable and consumable goods from manufacturers
and distributors of goods in the U.S.
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