Market News

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended October 15, 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 October 8 & 15, 2021.

• In the FX Spot and Derivatives markets, the total turnover for the week-ended October 15, 2021, was $1,569.08 million, representing an increase of 57.47% ($572.63 million) from $996.44 million reported for the week-ended October 8, 2021. The week-on-week (WoW) increase in total turnover was driven by the 10.60% ($71.81 million) and 157.07% ($500.83 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 1,597.65% ($381.21 million) increase in FX Futures turnover

• In the FX Spot market, the total value of transactions for the week-ended October 15, 2021, was $749.39 million, representing an increase of 10.60% ($71.81 million) from the value of transactions executed in the week-ended October 8, 2021 ($677.59 million)

     Table 1: Weekly FX Turnover Analysis

For the week-ended October 15, 2021, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) was $/N413.40, compared to $/N412.98 recorded in the previous week-ended October 8, 2021, representing a depreciation of the Naira against the United States (US) Dollar by 0.10% ($/N0.42). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

 three

• In the FX Futures market, $405.06 million worth of FX Futures contracts were traded in six (6) deals, representing a WoW increase of 2,626.46% ($390.21 million) when compared to $14.86 million FX Futures contracts traded in three (3) deals recorded in the week-ended October 8, 2021