How Real-Time Naira-Dollar Exchange Rates on P2P Crypto Platforms Take dey Work?

[Davidvictorson]

Every day we hear about the naira going up or coming down. There are other lingos used to describe the price movement but at least we understand it. In the past, I used to just use Google to search, "How much is naira to dollar" and the result would come out. However, I soon discovered that this result isn't accurate. Enters crypto exchanges, specifically peer to peer (P2P)on these platforms. It offered a quick accurate(at least >90) result of the naira to dollar price movements. It became more reliable than Google.

In the morning, the price of a naira to dollar fit be 1300 to 1 dollar and in the afternoon it may now have changed to 1350. Watching it happen in real time is so fascinating that I wonder how does this price movement mechanism happen.
Abi dem connect these P2P platforms to our Naija stock Exchange or some kind of forex market API? Abi which kind other method way dem dey use take determined and put update for the exchange rated. Abeg I assume say most of us dey use P2P platforms and if you sabi how this thing dey work, I go like make you enlighten me.

[Charles-Tim]

The parallel (black market) rate which Bureau De Change operators are using are also used for P2P in Nigeria.

I was surprised when the allegations that BDC operators are usj g Binance rate but what we know before was that BBC rate is always slightly higher than the official rate until one days ago that it was lower. It is higher back now again.

[Barikui1]

Every day we hear about the naira going up or coming down.

In the morning, the price of a naira to dollar fit be 1300 to 1 dollar and in the afternoon it may now have changed to 1350. Watching it happen in real time is so fascinating that I wonder how does this price movement mechanism happen.
Abi dem connect these P2P platforms to our Naija stock Exchange or some kind of forex market API? Abi which kind other method way dem dey use take determined and put update for the exchange rated. Abeg I assume say most of us dey use P2P platforms and if you sabi how this thing dey work, I go like make you enlighten me.

Bro, no just allow am confuse you, wetin dy affect the price of dollar and price of naira na just people's sentiment, or I go say na the higher rate of demand or less demand nai dey affect the price, ok make we look am from this angle, you know say as Nigerian wey we be, we dy do more of importation than exportation, so while doing that, we need to get dollar in hand, for the importation of any goods or service to go through, so our demand for dollar dy very  high now, and any action like that dy always reflect in the parallel market.

And for economics, we all know say the higher the demand of a goods, the higher the price of the commodity, so as it stands now, the demand for dollar in naija dy too high, the government just dy try all their best to suppress the appreciation of the dollar, which I believe say Dem no go fit sustain am, because the root cause has not been addressed, and until they address the root cause, and the demand of dollars reduced, na so dollar go keep on rising everyday, wether the government like it or not.

[SmartGold01]

Nothing much over there the thing is people are trading other exchange and they knows the price already so, when the black market sells it's not always the same with exchange most times black get lower while exchange get higher while some times the market inter change.
You can also see that there are people who is only trading NGN/Dollar just as people do trade cryptocurrencies, and the p2p most reflects all side. Again, google gives the wrong exchange rate, sometimes i was also doing that but I noticed I do have wrong price update instead i do login to my OKX to verify price for giving out information to people around on the current price of dollar/NGN.

[EluguHcman]

I personally too does not know the interconnections on how the P2P exchanges rate networks to be updated with the real-time of the naira value over dollar but I think there must be a coalition between the P2P exchange platforms and the Central Bank as the regulatory financial system.

So the exchange platforms can always detect the current value of the naira over dollar in a concept like this as I may think.
This is why it is a Centralized exchange and that is why the our federal government feels they have the right demanding from the exchange to give them the list of Nigerians that are registered with the exchange p2p.

I have also been relied on the googling and the News to staying updated with the naira and dollar rate, I have at some point found the P2P exchange platforms useful for it but due to some contradictions of the P2P not giving a certain and specific rate via different vendors with their own rates, and also the risks of being exposed with my Bitcoin assets while in the public, I decided to use the Fiat exchange app which can give you a real-time rate as flexible as you can as well be compared other currency rates to others aside the dollar to naira .

This is the rate of $1 to naira with the Fiats exchange rate converter.
                                 

This is the rates using the P2P exchange platform. Obviously it is not giving a specific rate that is to say the rates are parallel.

                   

The shots are taken at the same time and yet there is this differences on the rates.
Meanwhile... I have always stayed reliable using the Fiat conversion app as shown above.

[iBaba]

In the morning, the price of a naira to dollar fit be 1300 to 1 dollar and in the afternoon it may now have changed to 1350. Watching it happen in real time is so fascinating that I wonder how does this price movement mechanism happen.
Abi dem connect these P2P platforms to our Naija stock Exchange or some kind of forex market API? Abi which kind other method way dem dey use take determined and put update for the exchange rated. Abeg I assume say most of us dey use P2P platforms and if you sabi how this thing dey work, I go like make you enlighten me.

Well, the P2P marketplace did not start today and historically this practice can be traced by to over 25 years ago when someone posted a product online and had another person requested to buy the product at a reasonable price and that's what birthed e-bay platform today being one of the earliest platforms practicing the P2P model over the internet. Ever since, a lot of companies have delved into the P2P business including the car hailing businesses who used the platform to allow passengers book rides online from the available drivers within the vicinity.

This same model was brought into the online trading or exchange platforms where users with local currencies can make transactions with users who are in need of those currencies, and vice-versa. For example, I can decide to join the system of the sellers if I have enough capital to invest in the system and once verified as a seller, I can trade off my capitals with clients interested in buying local currencies from me. Then, I make one end of the peer while the other end of the peer is the buyer/client.

 The exchange platform in itself does not have anything to do in the transaction chain but to create the platform or system for both peers to connect and do business. This is also similar to how Uber, Bolt, Rida and other ride hailing apps create avenue between passengers and drivers. Every peer of the business chain have to log into the appreciate with their capitals before they can proceed to sell. As for buyers/clients, you just come into platform and buy by lodging in the funds to their account.

Then, this is why the exchange platforms have provided several terms and guidelines to ensure that our financial assets are safe as well as security for the platforms. eg. You don't release funds until you are sure to have received the funds in your provided account details, etc.