Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended August 26, 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 August 19 & 26, 2022.
- In the FX Spot and Derivatives markets, the total turnover for the week-ended August 26, 2022, was $922.79 million, representing an increase of 88.45% ($433.11 million) from $489.68 million reported for the week-ended August 19, 2022. The week-on-week (WoW) increase in total turnover was driven by the 56.32% ($218.89 million) and 212.10% ($214.22 million) increases in FX Spot and FX Derivatives turnovers, respectively. (See Table 1 below)
- The WoW increase in FX Derivatives turnover was solely driven by the 306.52% ($217.63 million) increase in FX Futures turnover, whilst the FX Forwards turnover decreased by 11.37% ($3.41 million)
- In the FX Spot market, the total value of transactions for the week-ended August 26, 2022, was $607.57 million, representing an increase of 56.32% ($218.89 million) from the value of transactions executed in the week-ended August 19, 2022 ($388.68 million)
Table 1: Weekly FX Turnover Analysis
| Week-ended August 26, 2022 | Week-ended August 19, 2022 | WoW % Change | ||||
Weekly Turnover | Daily Average Turnover | % Share | Weekly Turnover | Daily Average Turnover | % Share | ||
($’million) | ($’million) | ||||||
FX Spot | 607.57 | 121.51 | 65.84 | 388.68 | 77.74 | 79.37 | 56.32 |
Forwards | 26.59 | 5.32 | 2.88 | 30.00 | 6.00 | 6.13 | (11.37) |
Futures | 288.63 | 57.73 | 31.28 | 71.00 | 14.20 | 14.50 | 306.52 |
FX Derivatives | 315.22 | 63.05 | 34.16 | 101.00 | 20.20 | 20.63 | 212.10 |
Total | 922.79 | 184.56 | 100.00 | 489.68 | 97.94 | 100.00 | 88.45 |
- In the FX Futures market, $288.63 million worth of FX Futures contracts were traded in thirty-nine (39) deals, representing a WoW increase of 306.52% ($217.63 million) when compared to the $71.00 million FX Futures contracts traded in nine (9) deals recorded in the week-ended August 19, 2022
- For the week-ended August 26, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦427.81, compared to $/₦427.94 recorded in the week-ended August 19, 2022, representing an appreciation of the Naira against the United States (US) Dollar by 0.03% ($/₦0.13). (See Table 2 below)
Table 2: Weekly FX Rate Analysis
| Aug. 22, 2022 | Aug. 23, 2022 | Aug. 24, 2022 | Aug. 25, 2022 | Aug. 26, 2022 | Weekly Average | WoW % Change | |
Aug. 26 2022 | Aug. 19 2022 | |||||||
NAFEX ($/₦) | 426.75 | 427.33 | 428.00 | 428.44 | 428.54 | 427.81 | 427.94 | 0.03 |