Crypto-based Parallel Exchange Rates (Working Paper dataset)
This dataset provides a cross-country indicator of parallel exchange rates based on crypto markets. Parallel exchange rates are measured as the price of bitcoin on the local market relative to the U.S. market. Parallel exchange rates are particularly relevant in countries with restrictions to external transactions. In these countries, agents are often willing to pay a premium to access foreign currency, reflected in a higher price of bitcoin in the local market compared to the U.S. market.
For details, see Crypto as a Market Place for Capital Flight (IMF Working Paper)
The Crypto Shadow Rate (LCU/USD) is calculated as: CryptoShadowRateLC/USD = BTCLCU / BTCUSD
Where:
- BTCUSD is the price of Bitcoin in international markets, quoted in U.S. Dollars (USD).
- BTCLCU is the price of Bitcoin in the local market, quoted in local currency units (LCU).