Monday, April 04, 2022 / 07:00 AM / by FMDQ/ Header Image Credit:  FT

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended April 1, 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 March 25 & April 1, 2022.

In the FX Spot and Derivatives markets, the total turnover for the week-ended April 1, 2022, was $891.71 million, representing an increase of 41.77% ($262.72 million) from $628.99 million reported for the week-ended March 25, 2022. The week-on-week (WoW) increase in total turnover was driven by the 312.10% ($282.86 million) increase in FX Derivatives turnover, despite the 3.74% ($20.14 million) decrease in FX Spot turnover. (See Table 1 below)

The WoW increase in FX Derivatives turnover was jointly driven by the 111.36% ($88.59 million) and 1,753.25% ($194.26 million) increases in FX Forwards and FX Futures turnovers, respectively

In the FX Spot market, the total value of transactions for the week-ended April 1, 2022, was $518.22 million, representing a decrease of 3.74% ($20.14 million) from the value of transactions executed in the week-ended March 25, 2022 ($538.36 million)

Table 1: Weekly FX Turnover Analysis

In the FX Futures market, $205.34 million worth of FX Futures contracts were traded in fourteen (14) deals, representing a WoW increase of 1,753.25% ($194.26 million) when compared to $11.08 million traded in one (1) deal recorded in the week-ended March 25, 2022

For the week-ended April 1, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N415.81, compared to $/N415.77 recorded in the week-ended March 25, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.01% ($/N0.04). (See Table 2 below)

Table 2: Weekly FX Rate Analysis