FMDQ Weekly Report

Commentary on the foreign exchange (FX) market with data for the week-ended August 10, 2018.

The Central Bank of Nigeria (CBN) intervened through its periodic supply of United States (US) Dollars in the FX market, offering $100.00 million via a Single Secondary Market Intervention Sales (SMIS) - Wholesale session held during the week-ended August 10, 2018. The apex bank also maintained its intervention for Small and MediumScale Enterprises (SMES) & Retail Invisible transactions supplying $55.00 million each for both interventions

In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades recorded for the week- ended August 3, 2018 stood at $0.91 billion. This represents an increase of 16.67% ($0.13 billion) when compared to the $0.78 billion traded in the previous week, bringing the total value traded at the Window year-to-date to $34.58 billion

For the reporting week-ended August 10, 2018, the CBN official rate rose by 0.05 to close at $/N306.00, indicating a 0.02% depreciation when compared to $/N305.95 recorded the previous week-ended August 3, 2018

In the Bureau de Change (BDC) market, still at the end of the reporting week, the exchange rate remained unchanged to close at $/N360.00

Also for the week-ended August 10, 2018, the Naira appreciated at the I&E FX Window, gaining 0.67 to close at $/N362.00 when compared to $/N362.67 recorded the previous week, resulting in a spread of $/N2.00 between the BDC market rate and I&E FX Window rate

On the other hand, the spread between the BDC market rate and the CBN official exchange rate fell by N0.05 to close at $/N54.00, indicating a 0.09% decrease from the $/N54.05 recorded in the previous week

In the OTC FX Futures market, $32.05 million worth of OTC FX Futures contracts were traded in four deals, compared to the total for the previous week (ended August 3, 2018) of $24.63 million traded in six (6) deals

Dealing Member-client Spot FX Market Turnover Report For the week-ended August 3, 2018, trading activity in the Spot FX market between the DMBS and their clients stood at $1,244.22 million (average daily turnover of $248.84 million), representing an increase of 22.29% when compared to the $1,017.42 million (average daily turnover of $203.48 million), recorded the week-ended July 27, 2018

A review of trading activity in the Spot FX market amongst banks for the week-ended August 3, 2018 revealed a decrease of 14.78%, as a total turnover of $264.03 million (average daily turnover of $52.81 million) was recorded, against the $309.83 million (average daily turnover of $61.97 million) reported the week-ended July 27, 2018