NAFEX Rate Depreciated by 0.27% WoW to N427.94

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended August 19, 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 12 & 19, 2022.

In the FX Spot and Derivatives markets, the total turnover for the week-ended August 19, 2022, was $489.68 million, representing a decrease of 36.58% ($282.44 million) from $772.12 million reported for the week-ended August 12, 2022. The week-on-week (WoW) decrease in total turnover was driven by the 75.60% ($312.87 million) decrease in FX Derivatives turnover, despite the 8.49% ($30.43 million) increase in FX Spot turnover. (See Table 1 below)

The WoW decrease in FX Derivatives turnover was solely driven by the 82.26% ($329.21 million) decrease in FX Futures, whilst the FX Forwards turnover increased by 119.62% ($16.34 million)

In the FX Spot market, the total value of transactions for the week-ended August 19, 2022, was $388.68 million, representing an increase of 8.49% ($30.43 million) from the value of transactions executed in the week-ended August 12, 2022 ($358.26 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended August 19, 2022			Week-ended August 12, 2022			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	388.68	77.74	79.37	358.26	71.65	46.40	8.49
Forwards	30.00	6.00	6.13	13.66	2.73	1.77	119.62
Futures	71.00	14.20	14.50	400.21	80.04	51.83	(82.26)
FX Derivatives	101.00	20.20	20.63	413.87	82.77	53.60	(75.60)
*Total*	*489.68*	*97.94*	*100.00*	*772.12*	*154.42*	*100.00*	(36.58)

In the FX Futures market, $71.00 million worth of FX Futures contracts were traded in nine (9) deals, representing a WoW decrease of 82.26% ($329.21 million) when compared to the $400.21 million FX Futures contracts traded in twenty-one (21) deals recorded in the week-ended August 12, 2022

For the week-ended August 19, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦427.94, compared to $/₦426.79 recorded in the week-ended August 12, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.27% ($/₦1.15). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Aug. 15, 2022

Aug. 16, 2022

Aug. 17, 2022

Aug. 18, 2022

Aug. 19, 2022

Weekly Average

WoW

% Change

Aug. 19

2022

Aug. 12