Monday, May 09, 2022 / 07:00 AM / by FMDQ/ Header Image Credit:  Getty Images/iStockphoto

Below commentary is on the Foreign Exchange (FX) market with data for the week-ended May 6, 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 29 & May 6, 2022.

• In the FX Spot and Derivatives markets, the total turnover for the week-ended May 6, 2022, was $409.36 million, representing a decrease of 56.58% ($533.34 million) from $942.70 million reported for the week-ended April 29, 2022. The week-on-week (WoW) decrease in total turnover was driven by the 63.17% ($519.79 million) and 11.31% ($13.55 million) decreases in FX Spot and FX Derivatives turnovers respectively. (See Table 1 below)

• The WoW decrease in FX Derivatives turnover was driven by the 8.06% ($4.93 million) and 14.71% ($8.62 million) decreases in FX Forwards and FX Futures turnovers respectively

• In the FX Spot market, the total value of transactions for the week-ended May 6, 2022, was $303.09 million, representing a decrease of 63.17% ($519.79 million) from the value of transactions executed in the week-ended April 29, 2022 ($822.88 million)

     Table 1: Weekly FX Turnover Analysis 

• In the FX Futures market, $50.00 million worth of FX Futures contracts were traded in two (2) deals, representing a WoW decrease of 14.71% ($8.62 million) when compared to the $58.62 million FX Futures contracts traded in four (4) deals recorded in the week-ended April 29, 2022 

• For the week-ended May 6, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦416.96, compared to $/₦416.84 recorded in the week-ended April 29, 2022, representing a depreciation of the Naira against the United States (US) Dollar of 0.03% ($/₦0.12). (See Table 2 below)

Table 2: Weekly FX Rate Analysis