When the gap between Nigeria’s crypto-implied naira rate and the official exchange rate widened, policymakers reached for the obvious lever, crypto. Restrict it, and the pressure on the naira would ease. It didn’t. A recent Bank for International Settlements working paper, using data across 27 currencies, finds that stablecoin flows do affect foreign exchange markets. […]
read more Why Nigeria’s Crypto ban added friction without stabilising the naira
