Monday, April 11, 2022 / 07:00 AM / by FMDQ/ Header Image Credit:  orbex 

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended April 8, 2022. The table following the commentary compares weekly turnover for trades between banks (FMDQ Dealing Member (Banks) [DMBs]/Authorised Dealers) and their clients for the weeks-ended April 1 & 8, 2022. 

In the FX Spot and Derivatives markets, the total turnover for the week-ended April 8, 2022, was $534.08 million, representing a decrease of 40.11% ($357.63 million) from $891.71 million reported for the week-ended April 1, 2022. The week-on-week (WoW) decrease in total turnover was driven by the 16.91% ($87.63 million) and 72.29% ($270.00 million) decreases in the FX Spot and FX Derivatives turnovers, respectively. (See Table 1 below) 

The WoW decrease in FX Derivatives turnover was jointly driven by the 43.21% ($72.65 million) and 96.10% ($197.34 million) decreases in FX Forwards and FX Futures turnovers, respectively 

In the FX Spot market, the total value of transactions for the week-ended April 8, 2022, was $430.59 million, representing a decrease of 16.91% ($87.63 million) from the value of transactions executed in the week-ended April 1, 2022 ($518.22 million)

Table 1: Weekly FX Turnover Analysis

In the FX Futures market, $8.00 million worth of FX Futures contracts were traded in three (3) deals, representing a WoW decrease of 96.10% ($197.34 million) when compared to $205.34 million FX Futures contracts traded in fourteen (14) deals recorded in the week-ended April 1, 2022 

For the week-ended April 8, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N415.76, compared to $/N415.81 recorded in the week-ended April 1, 2022, representing an appreciation of the Naira against the United States (US) Dollar by 0.01% ($/N0.05). (See Table 2 below)

Table 2: Weekly FX Rate Analysis