FMDQ Weekly Report
COMMENTARYON the Foreign Exchange (FX) market with data for the week-ended July 19, 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 July 16, 2019.
The apex bank sold $55.00 million each to both the Small and Medium-scale Enterprises (SMES) and the Retail (Invisibles) segment; and also released the resultsforits auction of Chinese Renminbi and US Dollar underthe Bilateral Currency Swap Agreement (BCSA) and SMIS – Retail held on July 12, 2019, selling ¥39.60 million and $298.70 million at both sessions respectively
In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week-ended July 12, 2019, closed at $0.65 billion, representing a decrease of 45.83% ($0.55 billion) when compared to the $1.20 billion reported in the previous week-ended July 5, 2019, bringing the year-to-date (YTD) value of trades at the window to $36.51 billion
For the reporting week-ended July 19, 2019, the CBN official rate fell by 0.05 to close at $/ 306.95, indicating a 0.02% appreciation when compared to $/ 307.00 recorded the previous weekended July 12, 2019
In the Bureau-de-change (BDC) market, the exchange rate fell by 0.50 to close at $/ 360.00 representing, a 0.14% appreciation when compared to $/ 360.50 recorded in the previous weekended July 12, 2019
Still for the week-ended July 19, 2019, the Naira depreciated at the I&E FX Window, losing 0.67 to close at $/ 361.46 when compared to $/ 360.79 recorded the previous week, resulting in a spread of $/ 1.46 between the BDC market rate and I&E FX Window rate
Also, the spread between the BDC market rate and the CBN official exchange rate fell by 0.45 to close at $/ 53.05, indicating a decrease of 0.84% from the $/ 53.50 recorded in the previous week
In the OTC FX Futures market, $93.00 million worth of OTC FX Futures contracts were traded in ten (10) deals, compared to the total of $115.13 million traded in eight (8) deals for the previous week-ended July 12, 2019.