FMDQ Weekly Report

Commentary on the Foreign Exchange (FX) market with data for the week-ended February 15, 2019.

The Central Bank of Nigeria (CBN) intervened through its periodic supply of United States (US) Dollars in the FX market, offering a total of $100.00 million to the Secondary Market Intervention Sales (SMIS) Wholesale window on February 12, 2019. The apex bank also sold $55.00 million each to both the Small and Medium-scale Enterprises (SMES) and the Retail (Invisibles) segment.

The apex bank released the results for its auction of Chinese Renminbi and (US) Dollar under the Bilateral Currency Swap Agreement (BCSA) and SMIS – Retail held on February 8, 2019, selling February 8, 2019, closed at $1.74 billion, representing an increase of 107.14% ($0.90 billion) when compared to the $0.84 billion reported in the previous week ending February 1, 2019, bringing the year-to-date (YTD) value of trades at the window to $5.59 billion ¥46.92 million and $279.13 million at both sessions respectively. In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week-ended

For the reporting week-ended February 15, 2019, the CBN official rate rose by 0.05 to close at $/ 306.75, indicating a 0.02% depreciation when compared to $/ 306.70 recorded the previous week-ended February 8, 2019. In the Bureau-de-change (BDC) market, the exchange rate rose by 1.00 to close at $/ 362.00 depicting a 0.28% depreciation when compared to $/ 361.00 recorded in the previous week-ended February 8, 2019

For the week-ended February 15, 2019, the Naira depreciated at the I&E FX Window, losing 0.12 to close at $/ 361.85 when compared to $/ 361.73 recorded the previous week, resulting in a spread of $/ 0.15 between the BDC market rate and I&E FX Window ratethe spread between the BDC market rate and the CBN official exchange rate rose by 0.95 to close at $/ 55.25, indicating an increase of 1.75% from the $/ 54.30 recorded in the previous week

In the OTC FX Futures market, $189.81 million worth of OTC FX Futures contracts were traded in 21 deals, compared to the total for the previous week-ended February 8, 2019 of $406.42 traded in 26 deals

Dealing Member-client Spot FX Market Turnover Report

For the week-ended February 8, 2019, trading activities in the Spot FX market between the DMBS and their clients stood at $1,804.92 million (average daily turnover of $360.98 million), representing an increase of 30.88% when compared to the $1,379.02 million (average daily turnover of $275.80 million), recorded the week-ended February 1, 2019

A review of trading activities in the Spot FX market amongst banks for the week-ended February 8, 2019, revealed an increase of 31.57%, as a total turnover of $476.91million (average daily turnover of $95.38 million) was recorded, against $362.47million (average daily turnover of $72.49 million) reported the week-ended February 1, 2019