NAFEX Rate Appreciated by 0.85% WoW to N440.08

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended October 14, 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 October 7, 2022 & October 14, 2022.

In the FX Spot and Derivatives markets, the total turnover for the week-ended October 14, 2022, was $453.37 million, representing an increase of 13.60% ($54.27 million) from $399.10 million reported for the week-ended October 7, 2022. The week-on-week (WoW) increase in total turnover was solely driven by the 586.32% ($135.44 million) increase in FX Derivatives turnover despite the 21.59% ($81.17 million) decrease in FX Spot turnover. (See Table 1 below)

increase in FX Derivatives turnover was jointly driven by the 262.58% ($8.14 million) and 636.50% ($127.30 million) increases in FX Forwards and FX Futures turnovers, respectively

In the FX Spot market, the total value of transactions for the week-ended October 14, 2022, was $294.83 million, representing a decrease of 21.59% ($81.17 million) from the value of transactions executed in the week-ended October 7, 2022 ($376.00 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended October 14, 2022			Week-ended October 7, 2022			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	294.83	73.71	65.03	376.00	94.00	94.21	(21.59)
Forwards	11.24	2.81	2.48	3.10	0.78	0.78	262.58
Futures	147.30	36.83	32.49	20.00	5.00	5.01	636.50
FX Derivatives	158.54	39.64	34.97	23.10	5.78	5.79	586.32
*Total*	453.37	113.35	100.00	399.10	99.78	100.00	13.60

In the FX Futures market, $147.30 million worth of FX Futures contracts were traded in seven (7) deals, representing a WoW increase of 636.50% ($127.30million) when compared to the $20.00 million FX Futures contracts traded in one (1) deal recorded in the week-ended October 7, 2022

For the week-ended October 14, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦440.08 compared to $/₦436.47, recorded in the week-ended October 7, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.83% ($/₦3.61). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Oct. 11, 2022

Oct. 12, 2022

Oct. 13, 2022

Oct. 14, 2022

Weekly Average

WoW

% Change

Oct. 14

2022

Oct. 7

2022