FMDQ Weekly FX Market Analysis for Week-Ended July 23, 2021
In the FX Spot, Forwards and Futures markets, the total turnover for the week-ended July 23, 2021, was
$454.79 million, representing a decrease of 40.72% ($312.40 million) from $767.19 million reported for the week-ended July 16, 2021. The week-on-week (WoW) decrease in turnover was driven by the 49.86% ($325.65 million) decrease in the FX Spot turnover. (See Table 1 below)
- The WoW increase in FX Derivatives turnover was driven by the 14.56% ($14.46 million) increase in FX Forwards turnover, resulting in a 13.12 percentage points increase in FX Derivatives’ contribution to total FX market turnover to 27.98%, from 14.86% recorded in the previous week
- In the Investors’ & Exporters’ (I&E) FX market, the total value of transactions for the week-ended July 23, 2021, was $327.53 million, representing a decrease of 49.86% ($325.65 million) from the value of transactions executed in the week-ended July 16, 2021 ($653.18 million)
Table 1: Weekly FX Turnover Analysis
|
|
Week-ended July 23, 2021 |
Week-ended July 16, 2021 |
WoW % Change |
||||
|
Weekly |
Daily Average |
Percentage (%) Share |
Weekly |
Daily Average |
Percentage (%) Share |
||
|
($’million) |
($’million) |
||||||
|
FX Spot |
327.53 |
109.18 |
72.02 |
653.18 |
130.64 |
85.14 |
(49.86) |
|
Forwards |
113.76 |
37.92 |
25.01 |
99.30 |
19.86 |
12.94 |
14.56 |
|
Futures |
13.50 |
4.50 |
2.97 |
14.71 |
2.94 |
1.92 |
(1.21) |
|
FX Derivatives |
127.26 |
42.42 |
27.98 |
114.01 |
22.80 |
14.86 |
13.25 |
|
Total |
454.79 |
151.60 |
100.00 |
767.19 |
153.44 |
100.00 |
(40.72) |
|
|
|
|
|||||
- For the week-ended July 23, 2021, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦411.24, compared to $/₦411.07 recorded in the previous week-ended July 16, 2021, representing adepreciation of the Naira against the United States (US) Dollar by 0.04% ($/₦0.17)
- In the parallel market, the average exchange rate remained unchanged at $/₦500.00 for the week-ended July 23, 2021. Consequently, the spread between the average parallel market exchange rate and NAFEX rate decreased WoW by 0.19% ($/₦0.17) to $/₦88.76 in the week-ended July 23, 2021, from $/₦88.93 recorded in the previous week. (See Table 2 below)
Table 2: Weekly FX Rate Analysis
|
|
July 19 |
July 22 |
July 23 |
Weekly Average (July 23, 2021) |
Weekly Average (July 16, 2021) |
WoW % Change |
|
NAFEX ($/₦) |
411.33 |
411.11 |
411.28 |
411.24 |
411.07 |
(0.04) |
|
Parallel market ($/₦) |
500.00 |
500.00 |
500.00 |
500.00 |
500.00 |
0.00 |
In the FX Futures market, $13.50 million worth of FX Futures contracts were traded in two (2) deals, representing a WoW decrease of 8.20% ($1.21 million) when compared to $14.71 million traded in four
(4) deals recorded in the week-ended July 16, 2021
Still in the FX Futures market, the 61st FX Futures contract, NGUS JUL 28 2021, is set to mature and settle on FMDQ Exchange on Wednesday, July 28, 2021. The quotes for all sixty (60) monthly contracts can be found on the FMDQ Website