Arbitrage in Nigeria: Corruption or just a part of the game?

in LeoFinance2 months ago

The thing about Nigeria is that even the most mundane thing feels corrupt and shady. Things like Arbitrage, for example, between the dollar to naira exchange rate has come to mind and it is a "thriving" business for an exclusive bunch.

The official exchange rate is $1 to 386Naira and according to the central bank this rate should be made available for businesses and individuals that want to fly.

Despite the dollar allegedly being sold from Central Bank to Beurau de change across the country, people have lamented about the difficulties in acquiring dollar, thus leading to a parallel market rate that is soaring at insane pace.

The last time I checked the market on Binance, $1 was equivalent to 492naira, which is a dramatic deviation from the official rate. This opens up arbitrage opportunities for the select few who can gain access to dollar at the official rate.
Screenshot_20201202064638.png

Arbitrage is part of the game and as we have seen in the leo and wleo situation, it doesn't hurt anybody. However, in a situation where only some people have access to the dollar at the official rate, it creates an unfair and nepotistic system.

As far as I can tell, only large corporations like Dangote groups and some Oil companies have access to the dollar at the official rate, while the rest of us have to contend with that shitty rate.

This means that the select few can just buy at the official rate and then sell at the inflated black market rate.

Well, for people like me who earn in dollar or coins like hive and the rest that are pegged against dollar, the black market means we earn more Naira. The game is the game, you know?




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Jeez. Your country is fucked up my dude! xD

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Bro, it is a shitty place. Everything is corrupt.

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Sounds like it. I keep getting surprized tho xD

I remember when I wanted to try this back then only to realise I don't have access to purchase or exchange naira to dollar at the official rate! Damn... It almost broke me. 😭😂

Bro, I just tire for this place

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