NAFEX Rate Appreciated by 0.02% WoW to N415.89

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended March 18, 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 March 11 & 18, 2022.

In the FX Spot and Derivatives markets, the total turnover for the week-ended March 18, 2022, was $500.20 million, representing a decrease of 28.29% ($197.34 million) from $697.54 million reported for the week-ended March 11, 2022. The week-on-week (WoW) decrease in total turnover was driven by the 32.46% ($197.05 million) and 0.32% ($0.29 million) decreases in FX Spot and FX Derivatives turnover, respectively. (See Table 1 below)

The WoW decrease in FX Derivatives turnover was driven by the 0.87% ($0.78 million) decrease in FX Forwards turnover, despite the $0.50 million increase in FX Futures turnover

In the FX Spot market, the total value of transactions for the week-ended March 18, 2022, was $410.02 million, representing a decrease of 32.46% ($197.05 million) from the value of transactions executed in the week-ended March 11, 2022 ($607.07 million)

Table 1: Weekly FX Turnover Analysis

[1] % WoW Change is indeterminable due to nil value reported in prior week

In the FX Futures market, $0.50 million worth of FX Futures contracts were traded in one (1) deal, representing a WoW increase of 100.00% when compared to the week-ended March 11, 2022, when there were no trades recorded

For the week-ended March 18, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N415.89, compared to $/N415.98 recorded in the week-ended March 11, 2022, representing an appreciation of the Naira against the United States (US) Dollar by 0.02% ($/N0.09). (See Table 2 below)

Table 2: Weekly FX Rate Analysis