How Stablecoins Reveal the True FX Rates in Emerging Markets

TLDR: Stablecoins like USDT premiums consistently track parallel FX markets, revealing true dollar demand ignored by official rates. Continuous stablecoin trading enables real-time FX price discovery during political shocks and market closures. Falling USDT premiums in Nigeria reflected improved monetary policy credibility faster than official indicators. Crypto-wide volatility can temporarily distort FX signals, limiting stablecoins [...]

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