NAFEX Rate Depreciated by 1.63% WoW to N435.44

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended September 9, 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 September 2 & 9, 2022.

In the FX Spot and Derivatives markets, the total turnover for the week-ended September 9, 2022, was $639.24 million, representing a decrease of 37.09% ($376.86 million) from $1,016.10 million reported for the week-ended September 2, 2022. The week-on-week (WoW) decrease in total turnover was driven by the 51.92% ($365.80 million) and 3.55% ($11.06 million) decreases in FX Spot and FX Derivatives turnovers, respectively. (See Table 1 below)

The WoW decrease in FX Derivatives turnover was solely driven by the 77.29% ($34.61 million) decrease in FX Forwards turnover, despite the 8.83% ($23.55 million) increase in FX Futures turnover

In the FX Spot market, the total value of transactions for the week-ended September 9, 2022, was $338.70 million, representing a decrease of 51.92% ($365.80 million) from the value of transactions executed in the week-ended September 2, 2022 ($704.50 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended September 9, 2022			Week-ended September 2, 2022			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	338.70	67.74	52.98	704.50	140.90	69.33	(51.92)
Forwards	10.17	2.03	1.59	44.78	8.96	4.41	(77.29)
Futures	290.37	58.07	45.42	266.82	53.36	26.26	8.83
FX Derivatives	300.54	60.10	47.02	311.60	62.32	30.67	(3.55)
*Total*	*639.24*	*127.84*	*100.00*	*1,016.10*	*203.22*	*100.00*	*(37.09)*

In the FX Futures market, $290.37 million worth of FX Futures contracts were traded in fifty-one (51) deals, representing a WoW increase of 8.83% ($23.55 million) when compared to the $266.82 million FX Futures contracts traded in forty-six (46) deals recorded in the week-ended September 2, 2022

For the week-ended September 9, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦435.44, compared to $/₦428.44 recorded in the week-ended September 2, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 1.63% ($/₦7.00). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Sep. 5, 2022

Sep. 6 2022

Sep. 7, 2022

Sep. 8, 2022

Sep. 9, 2022

Weekly Average

WoW

% Change

Sep. 9

2022

Sep. 2