Market News

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended November 26, 2021. 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 November 19 & 26, 2021. 

• In the FX Spot and Derivatives markets, the total turnover for the week-ended November 19, 2021, was $1,094.65 million, representing an increase of 60.23% ($411.48 million) from $683.17 million reported for the week-ended November 19, 2021. The week-on-week (WoW) increase in total turnover was driven by the 25.71% ($138.19 million) and 187.58% ($273.29 million) increases in FX Spot and FX Derivatives turnover, respectively. (See Table 1 below)

• The WoW increase in FX Derivatives turnover was driven by the 164.67% ($201.08 million) and 306.20% ($72.21 million) increases in FX Forwards and FX Futures turnover

• In the FX Spot market, the total value of transactions for the week-ended November 26, 2021, was $675.66 million, representing an increase of 25.71% ($138.19 million) from the value of transactions executed in the week-ended November 19, 2021 ($537.48 million)

     Table 1: Weekly FX Turnover Analysis

For the week-ended November 26, 2021, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) was $/N413.59, compared to $/N413.45 recorded in the week-ended November 19, 2021, representing a depreciation of the Naira against the United States (US) Dollar by 0.03% ($/N0.14). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

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• In the FX Futures market, $87.80 million worth of FX Futures contracts were traded in eight (8) deals, representing a WoW increase of 329.66% ($67.36 million) when compared to $20.43 million FX Futures contracts traded in four (4) deals recorded in the week-ended November 19, 2021