Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended December 30, 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 23, 2022, & December 30, 2022.

• In the FX Spot and Derivatives markets, the total turnover for the week-ended December 30, 2022, was $598.41 million, representing a decrease of 48.12% ($555.10 million) from $1,153.51 million reported for the week-ended December 23, 2022. The week-on-week (WoW) decrease in total turnover was driven by a combined 30.81% ($226.67 million) and 78.61% ($328.43 million) decrease in FX Spot and FX Derivatives turnover, respectively. (See Table 1 below)
• The WoW decrease in FX Derivatives turnover was jointly driven by the 95.13% ($106.72 million) and 72.54% ($221.71 million) decreases in FX Forwards and FX Futures turnover respectively 
• In the FX Spot market, the total value of transactions for the week-ended December 30, 2022, was $509.04 million, representing a decrease of 30.81% ($226.67 million) from the value of transactions executed in the week-ended December 23, 2022 ($735.71 million)

 Table 1: Weekly FX Turnover Analysis 

• In the FX Futures market, $83.91 million worth of FX Futures contracts were traded in seven (7) deals, representing a WoW decrease of 72.54% ($221.71 million) when compared to the $305.62 million FX Futures contracts traded in sixteen (16) deals recorded in the week-ended December 23, 2022

• For the week-ended December 30, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦459.92 compared to $/₦452.76, recorded in the week-ended December 23, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 1.58% ($/₦7.16). (See Table 2 below)

Table 2: Weekly FX Rate Analysis