FMDQ Weekly Foreign Exchange Market Analysis Report for Week-Ended June 4, 2021
Please see below for commentary on the Foreign Exchange (FX) market with data for the week-ended June 4, 2021. The table following the commentary shows Spot FX weekly turnover for trades between banks (FMDQ Dealing Member (Banks) [DMBs]/Authorised Dealers) and their clients for the week ended May 28 & June 4, 2021.
- In the FX Spot, Forwards and Futures markets, the total turnover for the week-ended June 4, 2021, was $1,069.71 million, representing a decrease of 14.49% ($181.26 million) from $1,250.97 million reported for the week-ended May 28, 2021. The week-on-week (WoW) decrease in turnover was driven by the 24.75% ($222.62 million) decrease in the FX Spot turnover. (See Table 1 below)
- The WoW increase in FX Derivatives turnover was driven by the increase of 59.39% ($113.05 million) in FX Futures turnover, resulting in an increase in FX Derivatives’ contribution to total FX market turnover, by 14.22 Percentage Points to 28.10% from 13.88% recorded in the previous week
- In the Investors’ & Exporters’ (I&E) FX Market, the total value of transactions for the week-ended June 4, 2021, was $676.80 million, representing a decrease of 24.75% ($222.62 million) from $899.42 million traded in the week-ended May 28, 2021
Table 1: Weekly FX Turnover Analysis
|
Week-ended June 4, 2021 |
Week-ended May 28, 2021 |
WoW % Change |
||||
Weekly |
Daily Average |
Percentage (%) Share |
Weekly |
Daily Average |
Percentage (%) Share |
||
($’million) |
($’million) |
||||||
FX Spot |
676.80 |
135.36 |
63.27 |
899.42 |
179.88 |
71.90 |
(24.75) |
Forwards |
89.51 |
17.90 |
8.37 |
161.20 |
32.24 |
12.89 |
(44.47) |
Futures |
303.40 |
60.68 |
28.36 |
190.35 |
38.07 |
15.22 |
59.39 |
FX Derivatives |
392.91 |
78.58 |
36.73 |
351.55 |
70.31 |
28.10 |
11.77 |
Total |
1,069.71 |
213.94 |
100.00 |
1,250.97 |
250.19 |
100.00 |
(14.49) |
- For the week-ended June 4, 2021, the weekly average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/?410.74 compared to $/N410.91 recorded in the previous week-ended May 28, 2021, representing an appreciation of the Naira against the United States (US) Dollars by $/?0.17
- In the Bureau-de-Change (BDC) market, the Naira depreciated against the US Dollars by $/?8.00 to close the week-ended June 4, 2021, at an average rate of $/N495.00, representing a 1.64% depreciation when compared to $/N487.00 recorded in the previous week, resulting in a spread of $/?84.26 between the weekly average BDC rate and NAFEX rate. (See Table 2 below)
Table 2: Weekly FX Rate Analysis
|
May 31 |
June 1 |
June 2 |
June 3 |
June 4 |
Weekly Average (June 4, 2021) |
Weekly Average (May 28, 2021) |
WoW % Change |
NAFEX ($/?) |
411.25 |
410.36 |
410.33 |
410.93 |
410.85 |
410.74 |
410.91 |
0.04 |
BDC ($/?) |
495.00 |
495.00 |
495.00 |
495.00 |
495.00 |
495.00 |
487.00 |
1.64 |
- In the FX Futures market, $303.40 million worth of FX Futures contracts were traded in four (4) deals, representing a WoW increase of 59.39% ($113.05 million) when compared to $190.35 million traded in twenty-two (22) deals recorded in the week-ended May 28, 2021.