Monday, May 30, 2022 / 07:00 AM / by FMDQ/ Header Image Credit: fairforex
Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended May 27, 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 May 20 & 27, 2022.
- In the FX Spot and Derivatives markets, the total turnover for the week-ended May 27, 2022, was $870.53 million, representing an increase of 29.15% ($196.47 million) from $674.06 million reported for the week-ended May 20, 2022. The week-on-week (WoW) increase in total turnover was driven by the 126.43% ($223.99 million) increase in FX Derivatives despite the 5.54% ($27.52 million) decrease in FX Spot. (See Table 1 below)
- The WoW increase in FX Derivatives turnover was solely driven by the 569.18% ($284.59 million) increase in FX Futures despite the 47.66% ($60.60 million) decrease in FX Forwards turnover
- In the FX Spot market, the total value of transactions for the week-ended May 27, 2022, was $469.38 million, representing a decrease of 5.54% ($27.52 million) from the value of transactions executed in the week-ended May 20, 2022 ($496.90 million)
Table 1: Weekly FX Turnover Analysis
| Week-ended May 27, 2022 | Week-ended May 20, 2022 | WoW % Change | ||||
Weekly Turnover | Daily Average Turnover | % Share | Weekly Turnover | Daily Average Turnover | % Share | ||
($’million) | ($’million) | ||||||
FX Spot | 469.38 | 93.88 | 53.92 | 496.90 | 99.38 | 73.72 | 5.54 |
Forwards | 66.56 | 13.31 | 7.65 | 127.16 | 25.43 | 18.86 | 47.66 |
Futures | 334.59 | 66.92 | 38.44 | 50.00 | 10.00 | 7.42 | 569.18 |
FX Derivatives | 401.15 | 80.23 | 46.08 | 177.16 | 35.43 | 26.28 | 126.43 |
Total | 870.53 | 174.11 | 100.00 | 674.06 | 134.81 | 100.00 | 29.15 |
- In the FX Futures market, $334.59 million worth of FX Futures contracts were traded in thirty-five (35) deals, representing a WoW increase of 569.18% ($284.59 million) when compared to the $50.00 million FX Futures contracts traded in nine (9) deals recorded in the week-ended May 20, 2022
- For the week-ended May 27, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦418.10, compared to $/₦417.14 recorded in the week-ended May 20, 2022, representing a depreciation of the Naira against the United States (US) Dollar of 0.23% ($/₦0.95). (See Table 2 below)
Table 2: Weekly FX Rate Analysis
| May 23, 2022 | May 24, 2022 | May 25, 2022 | May 26, 2022 | May 27, 2022 | Weekly Average | WoW % Change | |
May 27 2022 | May 20 2022 | |||||||
NAFEX ($/₦) | 417.46 | 418.17 | 418.00 | 418.08 | 418.77 | 418.10 | 417.46 | 0.23 |