NAFEX Rate Depreciated Marginally by 0.02% WoW to Close at N416.84

Monday, May 02, 2022 / 07:00 AM / by FMDQ/ Header Image Credit:

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

In the FX Spot and Derivatives markets, the total turnover for the week-ended April 29, 2022, was $942.70 million, representing an increase of 57.01% ($342.28 million) from $600.41 million reported for the week-ended April 22, 2022. The week-on-week (WoW) increase in total turnover was driven by the 58.06% ($302.28 million) and 50.12% ($40.00 million) increases in FX Spot and FX Derivatives turnovers, respectively. (See Table 1 below)

The WoW increase in FX Derivatives turnover was driven by the $58.62 million increase in FX Futures turnover, despite the 23.33% ($18.62 million) decrease in FX Forwards turnover

In the FX Spot market, the total value of transactions for the week-ended April 29, 2022, was $822.88 million, representing an increase of 58.06% ($302.28 million) from the value of transactions executed in the week-ended April 22, 2022 ($520.60 million)

Table 1: Weekly FX Turnover Analysis

In the FX Futures market, $58.62 million worth of FX Futures contracts were traded in four (4) deals, representing a WoW increase of $58.62 million when compared to the week-ended April 22, 2022, when there were no trades recorded
For the week-ended April 29, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦416.84, compared to $/₦416.77 recorded in the week-ended April 22, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.02% ($/₦0.07). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Apr. 25, 2022

Apr. 26, 2022

Apr. 27, 2022

Apr. 28, 2022

Apr. 29, 2022

Weekly Average

WoW

% Change

Apr. 29

2022

Apr. 22