FMDQ Weekly Report
COMMENTARY on the Foreign Exchange ( FX) market with data for the week- ended May 29, 2020. The table following the commentary show month- onmonth Spot FX turnover comparison for trades between banks ( FMDQ Dealing Member ( Banks) [ DMBS]/ Authorised Dealers) and their clients for January through to April 2020 and 2019, respectively.
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 via the Secondary Market Intervention Sales ( SMIS) Wholesale Window on May 27, 2020
In the Investors’ & Exporters’ ( I& E) FX Window, the total value of trades for the week- ended May 22, 2020, was
$ 0.21 billion, representing an increase of 23.53% ($ 0.04 billion) from the $ 0.17 billion reported for the weekended May 15, 2020, bringing the total value of trades at the window to $ 24.62 billion
For the reporting week- ended May 29, 2020, the CBN official rate remain unchanged at $/ 361.00 for the tenth consecutive week
In the Bureau- de- Change ( BDC) market, the exchange rate fell by 9.00 to close at $/ 453.00 representing a
1.95% appreciation when compared to $/ 462.00 recorded in the previous week- ended May 22, 2020
Still for the week- ended May 29, 2020, the Naira depreciated at the I& E FX Window, gaining 0.39 to close at $/ 386.33 when compared to $/ 385.94 recorded the previous week, resulting in a spread of $/ 66.67 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 9.00 to close at $/ 92.00, indicating a decrease of 8.91% from the spread of $/ 101.00 recorded in the previous week
In the FX Futures market, $ 989.68 million worth of FX Futures contracts were traded in twenty- seven ( 27) deals, compared to the total of $ 100.15 million traded in twentyeight ( 28) deals recorded the week- ended May 22, 2020
Also, the 47 th FX Futures contract, NGUS MAY 27 2020, matured and settled on FMDQ Exchange on Wednesday,
May 27, 2020.
Dealing Member- Client Spot FX Market Turnover Report
For the week- ended May 22, 2020, trading activities in the Spot FX market between the DMBS and their clients stood at $ 511.09 million ( average daily turnover of $ 102.22 million), representing an increase of 60.18% when compared to the $ 319.08 million ( average daily turnover of $ 63.82 million), recorded the previous week- ended May 15, 2020 .