Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended December 2, 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 November 25, 2022 & December 2, 2022.

• In the FX Spot and Derivatives markets, the total turnover for the week-ended December 2, 2022, was $927.52 million, representing an increase of 27.24% ($198.55 million) from $728.97 million reported for the week-ended November 25, 2022. The week-on-week (WoW) increase in total turnover was jointly driven by the 17.01% ($89.42 million) and 53.70% ($109.13 million) increases in FX Spot and FX Derivatives turnover respectively. (See Table 1 below)

• The WoW increase in FX Derivatives turnover was majorly driven by the 64.53% ($120.90 million) increase in FX Futures turnover which offset the 74.21% ($11.77 million) decrease in FX Forwards turnover

• In the FX Spot market, the total value of transactions for the week-ended December 2, 2022, was $615.18 million, representing an increase of 17.01% ($89.42 million) from the value of transactions executed in the week-ended November 25, 2022 ($525.76 million)

Table 1: Weekly FX Turnover Analysis 

• In the FX Futures market, $308.25 million worth of FX Futures contracts were traded in twenty-three (23) deals, representing a WoW increase of 64.53% ($120.90 million) when compared to the $187.35 million FX Futures contracts traded in twenty-five deals recorded in the week-ended November 25, 2022

• For the week-ended December 2, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦444.43 compared to $/₦444.53, recorded in the week-ended November 25, 2022, representing an appreciation of the Naira against the United States (US) Dollar by 0.02% ($/₦0.10). (See Table 2 below)

Table 2: Weekly FX Rate Analysis