Below is the commentary below on the Foreign Exchange (FX) market with data for the week-ended November 11, 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 November 4, 2022 & November 11, 2022.

• In the FX Spot and Derivatives markets, the total turnover for the week-ended November 11, 2022, was $787.98 million, representing an increase of 66.46% ($314.60 million) from $473.38 million reported for the week-ended November 4, 2022. The week-on-week (WoW) increase in total turnover was jointly driven by the 69.29% ($291.50 million) and 43.82% ($23.10 million) increases in FX Spot and FX Derivatives turnovers respectively. (See Table 1 below)

• The WoW increase in FX Derivatives turnover was jointly driven by the 942.55% ($4.43 million) and 35.74% ($18.67 million) increases in FX Forwards and FX Futures turnovers respectively 

• In the FX Spot market, the total value of transactions for the week-ended November 11, 2022, was $712.17 million, representing an increase of 69.29% ($291.50 million) from the value of transactions executed in the week-ended November 4, 2022 ($420.67 million)

 Table 1: Weekly FX Turnover Analysis 

• In the FX Futures market, $70.91 million worth of FX Futures contracts were traded in twelve (12) deals, representing a WoW increase of 35.74% ($18.67 million) when compared to the $52.24 million FX Futures contracts traded in seven (7) deals recorded in the week-ended November 4, 2022

• For the week-ended November 11, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦443.87 compared to $/₦443.13, recorded in the week-ended November 4, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.17% ($/₦0.74). (See Table 2 below)

Table 2: Weekly FX Rate Analysis