FMDQ Weekly Report

COMMENTARY on the Foreign Exchange ( FX) market with data for the week- ended July 9, 2021. The table following the commentary compares Spot FX weekly turnover for trades between banks ( FMDQ Dealing Member ( Banks) [ DMBS]/ Authorised Dealers) and their clients for the week ended July 2 & July 9, 2021.

In the FX Spot, Forwards and Futures markets, the total turnover for the week- ended July 9, 2021, was $ 663.04 million, representing a decrease of 13.60% ($ 104.40 million) from $ 767.44 million reported for the week- ended July 2, 2021. The week- on- week ( WOW) decrease in turnover was jointly driven by the 11.97% ($ 70.44 million) and 18.98% ($ 33.96 million) decrease in the FX Spot and FX Derivatives turnover, respectively

The WOW decrease in FX Derivatives turnover was jointly driven by the 6.62% ($ 5.86 million) and 31.09% ($ 28.09 million) decrease in FX Forwards and FX Futures turnover respectively, resulting in a 1.45 percentage points decrease in FX Derivatives’ contribution to total FX market turnover to 21.86%, from 23.31% recorded in the previous week

In the Investors’ & Exporters’ ( I& E) FX market, the total value of transactions for the week- ended July 9, 2021, was $ 518.10 million, representing a decrease of 11.97% ($ 70.44 million) from the value of For the week- ended July 9, 2021, the average Nigerian Autonomous Foreign Exchange Fixing ( NAFEX) rate was $/₦ 411.28, compared to $/₦ 410.74 recorded in the previous week- ended July 2, 2021, representing a depreciation of the Naira against the United States ( US) Dollar by 0.13% ($/₦ 0.54)

In the parallel market, the average exchange rate remained unchanged at $/₦ 500.00 for the week- ended July 9, 2021. Consequently, the spread between the average parallel market exchange rate and NAFEX rate decreased WOW by 0.60% ($/₦ 0.54) to $/₦ 88.72 in the week- ended July 9, 2021, from $/₦ 89.26 recorded in the previous week

In the FX Futures market, $ 62.26 million worth of FX Futures contracts were traded in six ( 6) deals, representing a WOW decrease of 0.31% ($ 28.09 million) when compared to $ 90.35 million traded in thirteen ( 13) deals recorded in the weekended July 2, 2021