💡 Higher price of bitcoin in Nigeria may be due to high demand for dollars, not for bitcoin itself

This week everyone, including us, reported the high price of bitcoin in Nigeria. The media linked this fact with the restrictions of the Central Bank on cash withdrawals.

However, restrictions on ATM withdrawals were introduced on December 6, since then they have been gradually eased, and they doubled only in January.

☝️ In fact, the premium for bitcoins has always been observed, it did not increase significantly at all after the introduction of new restrictions. And, interestingly, it is just comparable to the discrepancy between the official price of the dollar and its value on the black market. The official exchange rate is set by the government, and due to the strong devaluation of the local currency, the dollar sells for much more in the unofficial currency markets.

Therefore, Nigerians simply buy bitcoin more than the global price for the national currency, in order to then overflow into the dollar.