NAFEX Rate Depreciated by 0.15% WoW to N428.44

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended September 2, 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 26 & September 2, 2022.

In the FX Spot and Derivatives markets, the total turnover for the week-ended September 2, 2022, was $1,016.10 million, representing an increase of 10.11% ($93.31 million) from $922.79 million reported for the week-ended August 26, 2022. The week-on-week (WoW) increase in total turnover was driven by the 15.95% ($96.93 million) increase in FX Spot turnover, offsetting the 1.15% ($3.62 million) decrease in FX Derivatives turnover. (See Table 1 below)

The WoW decrease in FX Derivatives turnover was solely driven by the 7.56% ($21.81 million) decrease in FX Futures turnover, despite the 68.41% ($18.19 million) increase in FX Forwards turnover

In the FX Spot market, the total value of transactions for the week-ended September 2, 2022, was $704.50 million, representing an increase of 15.95% ($96.93 million) from the value of transactions executed in the week-ended August 26, 2022 ($607.57 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended September 2, 2022			Week-ended August 26, 2022			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	704.50	140.90	69.33	607.57	121.51	65.84	15.95
Forwards	44.78	8.96	4.41	26.59	5.32	2.88	68.41
Futures	266.82	53.36	26.26	288.63	57.73	31.28	(7.56)
FX Derivatives	311.60	62.32	30.67	315.22	63.05	34.16	(1.15)
*Total*	*1,016.10*	*203.22*	*100.00*	*922.79*	*184.56*	*100.00*	*10.11*

In the FX Futures market, $266.82 million worth of FX Futures contracts were traded in forty-six (46) deals, representing a WoW decrease of 7.56% ($21.81 million) when compared to the $288.63 million FX Futures contracts traded in thirty-nine (39) deals recorded in the week-ended August 26, 2022

For the week-ended September 2, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦428.44, compared to $/₦427.81 recorded in the week-ended August 26, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.15% ($/₦0.63). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Aug. 29, 2022

Aug. 30, 2022

Aug. 31, 2022

Sep. 1, 2022

Sep. 2, 2022

Weekly Average

WoW

% Change

Sep. 2

2022

Aug. 26