Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended December 23, 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 December 16, 2022 & December 23, 2022.

• In the FX Spot and Derivatives markets, the total turnover for the week-ended December 23, 2022, was $1,153.51 million, representing an increase of 7.34% ($78.92 million) from $1,074.59 million reported for the week-ended December 16, 2022. The week-on-week (WoW) increase in total turnover was solely driven by the 83.07% ($189.58 million) increase in FX Derivatives turnover despite the 13.07% ($110.66 million) decrease in FX Spot turnover.  (See Table 1 below)
• The WoW increase in FX Derivatives turnover was jointly driven by the 870.42% ($100.62 million) and 41.06% ($88.96 million) increases in FX Forwards and FX Futures turnover respectively
• In the FX Spot market, the total value of transactions for the week-ended December 23, 2022, was $735.71 million, representing a decrease of 13.07% ($110.66 million) from the value of transactions executed in the week-ended December 16, 2022 ($846.37 million)

 Table 1: Weekly FX Turnover Analysis 

• In the FX Futures market, $305.62 million worth of FX Futures contracts were traded in sixteen (16) deals, representing a WoW increase of 41.06% ($88.96 million) when compared to the $216.66 million FX Futures contracts traded in forty-six (46) deals recorded in the week-ended December 16, 2022
• For the week-ended December 23, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦452.76 compared to $/₦447.58, recorded in the week-ended December 16, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 1.16% ($/₦5.18).  (See Table 2 below)

Table 2: Weekly FX Rate Analysis