NAFEX Rate Depreciated by 0.52% WoW to N425.45

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended July 29, 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 July 22 & 29, 2022.

In the FX Spot and Derivatives markets, the total turnover for the week-ended July 29, 2022, was $538.30 million, representing a decrease of 42.81% ($402.98 million) from $941.28 million reported for the week-ended July 22, 2022. The week-on-week (WoW) decrease in total turnover was driven by the 44.56% ($368.61 million) and 30.12% ($34.37 million) decreases in FX Spot and FX Derivatives turnovers, respectively. (See Table 1 below)

The WoW decrease in FX Derivatives turnover was jointly driven by the 64.82% ($8.61 million) and 25.55% ($25.76 million) decreases in FX Forwards and FX Futures turnovers, respectively

In the FX Spot market, the total value of transactions for the week-ended July 29, 2022, was $458.55 million, representing a decrease of 44.56% ($368.62 million) from the value of transactions executed in the week-ended July 22, 2022 ($827.17 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended July 29, 2022			Week-ended July 22, 2022			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	458.55	91.71	85.18	827.17	165.43	87.88	(44.56)
Forwards	4.67	0.93	0.87	13.29	2.66	1.41	(64.82)
Futures	75.07	15.01	13.95	100.83	20.17	10.71	(25.55)
FX Derivatives	79.75	15.95	14.82	114.12	22.82	12.12	(30.12)
*Total*	*538.30*	*107.66*	*100.00*	*941.28*	*188.26*	*100.00*	*(42.81)*

In the FX Futures market, $75.07 million worth of FX Futures contracts were traded in seven (7) deals, representing a WoW decrease of 25.55% ($25.76 million) when compared to the $100.83 million FX Futures contracts traded in sixteen (16) deals recorded in the week-ended July 22, 2022

For the week-ended July 29, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦425.45, compared to $/₦423.26 recorded in the week-ended July 22, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.52% ($/₦2.19). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Jul. 25 2022

Jul. 26, 2022

Jul. 27, 2022

Jul. 28, 2022

Jul. 29, 2022

Weekly Average

WoW

% Change

Jul. 29

2022

Jul. 22