NAFEX Rate Appreciated by 0.04% WoW to N413.45

On Nov 22, 2021

Monday, November 22, 2021 07:50 AM / by FMDQ/ Header
Image Credit: Instarem

Below is the commentary on
the Foreign Exchange (FX) market with data for the week-ended November 19,
2021. The table following the commentary compares weekly turnover for trades
between banks (FMDQ Dealing Member (Banks) [DMBs]/Authorised Dealers) and their
clients for the weeks-ended November 12 & 19, 2021.

In
the FX Spot and Derivatives markets, the total turnover for the week-ended
November 19, 2021, was $683.17 million, representing a decrease of 9.01%
($67.61 million) from $750.79 million reported for the week-ended November
12, 2021. The week-on-week (WoW) decrease in total turnover was driven by
the 1.35% ($7.34 million) and 29.26% ($60.27 million) decreases in FX Spot
and FX Derivatives turnover, respectively. (See Table 1 below)

The
WoW decrease in FX Derivatives turnover was driven by the 39.03% ($78.16 million) decrease in FX
Forwards turnover, despite the 313.76% ($17.88 million) increase in FX
Futures turnover

In
the FX Spot market, the total value
of transactions for the week-ended November 19,
2021, was $537.48 million, representing a decrease of 1.35% ($7.34 million) from the value of transactions
executed in the week-ended November 12, 2021 ($544.82 million)

Table 1: Weekly FX
Turnover Analysis

Proshare Nigeria Pvt. Ltd.

For the
week-ended November 19, 2021, the average Nigerian Autonomous Foreign Exchange
Fixing (NAFEX) was $/N413.45, compared to $/N413.62 recorded in the week-ended November
12, 2021, representing an appreciation of the Naira against the United States
(US) Dollar by 0.04% ($/N0.17). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

In the FX Futures market,
$20.43 million worth of FX Futures contracts were traded in four (4)
deals, representing a WoW increase of 423.96% ($16.53 million) when
compared to $3.90 million FX Futures contracts traded in two (2) deals
recorded in the week-ended November 12, 2021