Just finished a gigantic size game against 9 enemies on normal difficulty (my second game so don't gripe about the weak difficulty).
Game was going well until I built the galactic bazaar. At this point with rediculous diplomacy bonus's combined with the 50% boost to perceived trade value from the bazaar, I was able to trade money to other races at roughly a 1:2 ratio (was able to get 20,000 credits for 10,000).
This enabled me to purchase every single starbase on the map, and then eventually planets as well, as I was able to purchase the bases, then win my money back using the above cheese.
I finished with a 50,000 point dominating cultural victory.
I don't know exactly how far the issues pervails, (ie, could you trade a planet back and forth and gain infinite dollars), but at the very least I assume that money for money exchanges should be automatically forbidden.
I'm not using the 1.1 beta, not sure if this is resolved there.