> For the complete documentation index, see [llms.txt](https://hub.moonexe.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hub.moonexe.com/how-it-works/the-usdt-premium.md).

# The USDT premium

How money changers earn, and why the price of USDT differs from country to country.

## How money changers make a profit

Money changers don't need exchange rates to move. They buy a currency slightly cheaper and sell it slightly higher.

|                | Need      | Trade with the money changer                               |
| -------------- | --------- | ---------------------------------------------------------- |
| **Customer A** | Needs SGD | The money changer buys USD from A at **1 USD = 1.340 SGD** |
| **Customer B** | Needs USD | The money changer sells USD to B at **1 USD = 1.360 SGD**  |

The difference between the two prices, the **spread**, is the money changer's profit.

## Same coin, different prices

USDT is pegged to $1 USD, but only on paper. In practice, USDT trades at different prices in different countries. That gap is the **USDT premium**, and it creates constant, recurring demand for MoonExe liquidity.

| Country        | Why the premium exists                                                     | Typical premium |
| -------------- | -------------------------------------------------------------------------- | --------------- |
| 🇦🇷 Argentina | Hyperinflation, an unstable peso                                           | 10–20% at peaks |
| 🇳🇬 Nigeria   | Currency devaluation, USD shortage                                         | +5–15% at peaks |
| 🇪🇬 Egypt     | FX restrictions, black-market USD demand                                   | +5–12%          |
| 🇹🇷 Turkey    | Lira volatility, inflation hedging                                         | +3–8%           |
| 🇵🇰 Pakistan  | USD scarcity, remittance demand                                            | +2–6%           |
| 🇻🇳 Vietnam   | High crypto demand, limited banking access                                 | +1–3%           |
| 🇮🇩 Indonesia | Import/export settlement demand                                            | +0.5–2%         |
| 🇹🇭 Thailand  | Cross-border trade and remittance demand                                   | +0.5–1.5%       |
| 🇪🇺 Eurozone  | Almost none: deep FX liquidity and unrestricted access to foreign currency | 0–1%            |

{% hint style="info" %}
**Wherever currency friction exists, demand for stablecoins follows.** About $140 billion of USDT circulates worldwide, spread unevenly across countries. MoonExe bridges that imbalance.
{% endhint %}


---

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