Why Can USDT Cost More Than USD In Local Currency?

[Opiate32]

Many beginners assume that since USDT is pegged to the US dollar at 1:1, both should have the same price when converted to local currency but that is not always the case. For example if a bank quoted USD at 123.50 BDT while USDT sells for 127 BDT on a P2P platforms, there is a noticeable difference  right? This doesn’t automatically mean that USDT has lost it peg. The two prices may reflect different markets and trading conditions.

Bank rates may differ from the rates that the customer receives while P2P prices can be affected by local demand and access to foreign currency. The fees and amount being traded can also affect the final rate. It is also worth remembering to know that USDT can trade above and below $1 on the open market despite it intended dollar peg. The most important thing is to compare equivalent rates and the actual transaction costs before drawing conclusion.

For those who trade P2P, how significant the s the difference between USDT and bank USD in your country? What do you think contributes more to it?

[Charles-Tim]

I don't know if this topic should be on this board because it should be in altcoins board since, it's not about bitcoin but USD/USDT

Yes, it has been moved to altcoins discussion. But what I am surprised about is how similar but not to totally the same topic was posted many hours ago before this topic.

This is the topic that I am referring to:

Why we see the price differences between USDT VS USD?

All coins that are pegged, including the RWA tokens are not all having the same price with the asset they are pegged with for an obvious reason.