FMDQ Market Report

COMMENTARY on the foreign exchange (FX) market with data for the week-ended May 25, 2018

The Central Bank of Nigeria (CBN) intervened through its periodic supply of US Dollars in the FX market, offering $100.00mm at a marginal rate of $/ 332.00 via a Single Secondary Market Intervention Sales (SMIS) – Wholesale session held during the week-ended May 25, 2018. The apex bank also maintained its intervention for Small and Medium-scale Enterprises (SMES) and Retail Invisibles transactions, selling $55.00 million each for both interventions

In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week-ended May 18, 2018 stood at $0.97 billion. This represents a decrease of 20.49% ($0.25 billion) when compared to the $1.22 billion traded in the previous week, bringing the total value traded at the Window year-to-date to $23.15 billion

For the reporting week-ended May 25, 2018, the CBN official rate rose by 0.05 to close at $/ 305.90, indicating a 0.02% depreciation when compared to $/ 305.85 recorded the previous week-ended May 18, 2018

In the Bureau de Change (BDC) market, still at the end of the reporting week, the exchange rate rose by 2.00 to close at $/ 367.00, indicating a 0.55% depreciation when compared to $/ 365.00 recorded the previous week-ended May 18, 2018

For the reporting week-ended May 18, 2018, the Naira depreciated at the I&E FX Window, losing

0.10 as the rate opened the week at $/ 361.47 and closed at $/ 361.57, resulting in a spread of $/ 5.43 between the BDC market rate and I&E FX Window rate

Dealing Member-client Spot FX Market Turnover Report

On the other hand, the spread between the BDC market rate and the CBN official exchange rate rose by 1.95 to close at $/ 61.10, indicating a 3.30% increase from the $/ 59.15 recorded in the previous week

In the OTC FX Futures market, the 23rd OTC FX Futures Contract, NGUS MAY 30 2018, with notional amount $360.79 million will mature and settle on Wednesday, May 30, 2018

For the week-ended May 18, 2018, trading activity in the Spot FX market between the DMBS and their clients stood at $1,328.04 million (average daily turnover of $265.61 million), representing 12.41% decrease from the $1,516.28 million (average daily turnover of $303.26 million), recorded the week-ended May 11, 2018

A review of trading activity in the Spot FX market amongst banks for the week-ended May 18, 2018 revealed a 132.47% increase, as a total turnover of $384.28 million (average daily turnover of $76.86 million) was recorded, against the $165.30 million (average daily turnover of $33.06 million) reported the weekended May 11, 2018