For those that are following the Crypto market in Nigeria, they will understand that the leading currency, BTC, may have already crossed the $64k mark when calculating with the CBN rate [NGN 380 per USD]. For those using unofficial rates, it is apparent that they will be receiving more monies in Naira for each USD when exchanging BTC to Naira as the unofficial rates very well allow for this.
Bundle Africa’s Yele Bademosi, notes that the unofficial rates are most probably the order of the day on digital crypto trade platforms. Comparing the Nigerian situation to Argentina, Andrés Ondarra, who is the “country manager for Argentina at Bitso” notes that the official price of the dollar in the market scales higher than the official rates even in Argentina.
Buenbit’s Emiliano Limia notes:
“This is mainly reflecting the difference between the informal U.S. dollar rate and the official one. The gap between the official and the informal dollar in Argentina is around 70%,”
Crypto trade plaftforms allowing for unofficial rates have highlighted that BTC trading shows the real price of local currencies in relation to the dollar.
Gina Peters notes: “It seems unlikely that the price should be that much higher unless there is the manipulation of the nominal exchange rate channel.” Gina Peters currently stands as a professor of Economics.
It made media rounds in 2020 when banks in Nigeria started restricting the quantity of USD that Nigerians can expend outside of Nigeria to $500. This has influenced the recent turn of events in light of the current U.S. dollar shortage in Nigeria. Expectedly, this contributed to the consequent tanking of the Naira as USD became more scarce and Nigerians were still willing to inclusively pay for the difference in the exchange rate.
“The general market is now setting the price to $480 as that seems to be the present value generally accepted between buyers and sellers.”
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