FMDQ Weekly Report

COMMENTARY on the Foreign Exchange ( FX) market with data for the week- ending June 11, 2020. The tables following the commentary show Spot FX weekly turnover for trades between banks ( FMDQ Dealing Member ( Banks) [ DMBS]/ Authorised Dealers) and their clients for May 2020, and a month- on- month turnover comparison for January through to May, 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 June 9, 2020

In the Investors’ & Exporters’ ( I& E) FX Window, the total value of trades for the week- ended June 5, 2020, was $ 0.29 billion, representing an increase of 31.82% ($ 0.07 billion) from the $ 0.22 billion reported for the week- ended May 29, 2020, bringing the total value of trades at the window to $ 25.13 billion

For the reporting week- ended June 11, 2020, the CBN official rate remain unchanged at $/ 361.00 for the twelfth consecutive week In the Bureau- de- Change ( BDC) market, the exchange rate also remained unchanged at $/ 450.00

Still for the week- ended June 11, 2020, the Naira appreciated at the I& E FX Window, losing 0.75 to close at $/ 385.75 when compared to $/ 386.50 recorded the previous week, resulting in a spread of $/ 64.25 between the BDC market rate and I& E FX Window rate

Also, the spread between the BDC market rate and the CBN official remained unchanged at $/ 89.00

In the FX Futures market, $ 67.44 million worth of FX Futures contracts were traded in five ( 5) deals, compared to the total of $ 328.87 million traded in nineteen ( 19) deals recorded the week- ended June 5, 2020 .

Dealing Member- Client Spot FX Market Turnover Report

For the week- ended June 5, 2020, trading activities in the Spot FX market between the DMBS and their clients stood at $ 548.32 million ( average daily turnover of $ 109.66 million), representing an increase of 71.89% when compared to the $ 318.99 million ( average daily turnover of $ 106.33 million), recorded the previous week- ended May 29, 2020

A review of trading activities in the Spot FX market amongst banks for the week- ended June 5, 2020, revealed an increase of 57.42%, as a total turnover of $ 171.92 million ( average daily turnover of $ 34.38 million) was recorded against $ 109.21 million ( average daily turnover of $ 36.40 million) reported the week- ended May 29, 2020