Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended June 24, 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 June 17 & 24, 2022.
- In the FX Spot and Derivatives markets, the total turnover for the week-ended June 24, 2022, was $744.10 million, representing an increase of 34.62% ($191.34 million) from $552.76 million reported for the week-ended June 17, 2022. The week-on-week (WoW) increase in total turnover was driven by the 33.49% ($126.64 million) and the 37.06% ($64.70 million) increases in FX Spot and FX Derivatives turnovers, respectively. (See Table 1 below)
- The WoW increase in FX Derivatives turnover was driven solely by the 82.72% ($69.35 million) increase in FX Futures turnover, despite the 5.12% ($4.65 million) decrease in FX Forwards turnover
- In the FX Spot market, the total value of transactions for the week-ended June 24, 2022, was $504.83 million, representing an increase of 33.49% ($126.64 million) from the value of transactions executed in the week-ended June 17, 2022 ($378.19 million)
Table 1: Weekly FX Turnover Analysis
| Week-ended June 24, 2022 | Week-ended June 17, 2022 | WoW % Change | ||||
Weekly Turnover | Daily Average Turnover | % Share | Weekly Turnover | Daily Average Turnover | % Share | ||
($’million) | ($’million) | ||||||
FX Spot | 504.83 | 100.97 | 67.84 | 378.19 | 94.55 | 68.42 | 33.49 |
Forwards | 86.09 | 17.22 | 11.57 | 90.74 | 22.68 | 16.42 | 5.12 |
Futures | 153.18 | 30.64 | 20.59 | 83.83 | 20.96 | 15.17 | 82.72 |
FX Derivatives | 239.27 | 47.85 | 32.16 | 174.57 | 43.64 | 31.58 | 37.06 |
Total | 744.10 | 148.82 | 100.00 | 552.76 | 138.19 | 100.00 | 34.62 |
- In the FX Futures market, $153.18 million worth of FX Futures contracts were traded in fifteen (15) deals, representing a WoW increase of 82.72% ($69.35 million) when compared to the $83.83 million FX Futures contracts traded in seven (7) deals recorded in the week-ended June 17, 2022
- For the week-ended June 24, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦418.95, compared to $/₦418.64 recorded in the week-ended June 17, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.07% ($/₦0.31). (See Table 2 below)
Table 2: Weekly FX Rate Analysis
| Jun. 20, 2022 | Jun. 21, 2022 | Jun. 22, 2022 | Jun. 23, 2022 | Jun. 24, 2022 | Weekly Average | WoW % Change | |
Jun. 24 2022 | Jun. 17 2022 | |||||||
NAFEX ($/₦) | 418.83 | 419.25 | 418.75 | 419.17 | 418.74 | 418.95 | 418.64 | 0.07 |