NAFEX Rate Depreciated by 0.06% WoW to N461.29

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended January 13, 2023. The table that follows compares weekly turnover for trades between banks (FMDQ Dealing Member (Banks)/Authorised Dealers) and their clients for the weeks-ended January 6, 2023 & January 13, 2023.

In the FX Spot and Derivatives markets, the total turnover for the week-ended January 13, 2023, was $523.05 million, representing an increase of 28.71% ($116.66 million) from $406.39 million reported for the week-ended January 6, 2023. The week-on-week (WoW) increase in total turnover was driven by the 53.81% ($156.82 million) increase in FX Spot turnover, despite the 34.94% ($40.16 million) decrease in FX Derivatives turnover. (See Table 1 below)

The WoW decrease in FX Derivatives turnover was largely driven by the 63.21% ($49.64 million) decrease in FX Forwards turnover, however, the FX Futures turnover experienced a 26.03% ($9.48 million) increase from $36.42 million to $45.90 million

In the FX Spot market, the total value of transactions for the week-ended January 13, 2023, was $448.26 million, representing an increase of 53.81% ($156.82 million) from the value of transactions executed in the week-ended January 6, 2023, ($291.44 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended January 13, 2023			Week-ended January 6, 2023			WoW % Change
	Weekly	Daily Average	% Share ($’million)	Weekly	Daily Average	% Share ($’million)
	($’million)		% Share ($’million)	($’million)		% Share ($’million)
FX Spot	448.26	89.65	85.70	291.44	72.86	71.71	53.81
Forwards	28.89	5.78	5.52	78.53	19.63	19.32	(63.21)
Futures	45.90	9.18	8.78	36.42	9.11	8.96	26.03
FX Derivatives	74.79	14.96	14.30	114.95	28.74	28.29	(34.94)
*Total*	*523.05*	*104.61*	*100.00*	*406.39*	*101.60*	*100.00*	28.71

In the FX Futures market, $45.90 million worth of FX Futures contracts were traded in three (3) deals, representing a WoW increase of 26.03% ($9.48 million) when compared to the $36.42 million FX Futures contracts traded in four (4) deals recorded in the week-ended January 6, 2023

For the week-ended January 13, 2023, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦461.29 compared to $/₦461.01, recorded in the week-ended January 6, 2023, representing a depreciation of the Naira against the United States (US) Dollar by 0.06% ($/₦0.28). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Jan. 09 2023

Jan. 10 2023

Jan. 11 2023

Jan. 12 2023

Jan. 13 2023

Weekly Average

WoW

% Change

Jan. 13

2023

Jan. 6