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Market | Forex

NAFEX Rate Depreciated by 0.23% WoW to Close at N418.10

May 30, 2022   •   by FMDQ   •   Source: FMDQ   •   eye-icon 524 views

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

 

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