The Guardian (Nigeria)

FMDQ Weekly Report

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COMMENTARY­ON

the Foreign Exchange ( FX), market with data for the week- ended July 16, 2021. The table following the commentary compares Spot FX weekly turnover for trades betweenban­ks ( FMDQ Dealing Member ( Banks) [ DMBS]/ Authorised Dealers) and their clients for the week ended July 9 and July 16, 2021.

In the FX Spot, Forwards and Futures markets, the total turnover for the week- ended July 16, 2021, was $ 767.19 million, representi­ng an increase of 15.71 per cent ($ 104.15 million) from $ 663.04 million reported for the week- ended July 9, 2021. The week- on week ( WOW) increase in turnover was jointly driven by the 26.07 per cent ($ 135.08 million) and 20.10% ($ 16.62 million) increase in the FX Spot and FX Forwards turnover, respective­ly

The WOW decrease in FX Derivative­s turnover was driven by the 76.38% ($ 47.55 million) decrease in FX Futures turnover, resulting in a 7.00 percentage points decrease in FX contributi­on to total FX market turnover to 14.86%, from 21.86% recorded in the previous week

Inthe&( I& E) Fxmarket, thetotalva­lueoftrans­actionsfor­theweek endedjuly 16, 2021, was $ 653.18 million, representi­ng an increase of 26.07% ($ 135.08 million) from the value of transactio­ns executed in the week- ended July 9, 2021 ($ 518.10 million) Fortheweek- endedjuly1­6,2021, theaverage­nigerianau­tonomousfo­reignexcha­ngefixing( N AFEX) rate was 07, compared to 1.28 recorded in the previous week- ended July 9, 2021, representi­ng an appreciati­on of the Naira against the United States ( US) Dollar by 0.05% 21)

In the parallel market, the average exchange rate remained unchanged at for the week- ended July 16, 2021. Consequent­ly, the spread between the average parallel market exchange rate and NAFEX rate increased WOW by 0.24% 21) to 93 in the week- ended July 16, 2021, from 8.72 recorded in the previous week

In the FX Futures market, $ 14.71 million worth of FX Futures contracts were traded in four ( 4) deals, representi­ng a WOW decrease of 76.38% ($ 47.55 million) when compared to $ 62.26 million traded in six ( 6) deals recorded in the week- ended July 9, 2021

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