Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended February 10, 2023. The table that follows compares weekly turnover for trades between banks (FMDQ Dealing Member (Banks)/Authorised Dealers) and their clients for the weeks-ended February 3 & 10, 2023.
- In the FX Spot and Derivatives markets, the total turnover for the week-ended February 10, 2023, was $451.61 million, a decrease of 46.42% ($391.25 million) from $842.86 million reported for the week-ended February 3, 2023. The week-on-week (WoW) decrease in total turnover was jointly driven by the 40.34% ($232.33 million) and 59.54% ($158.92 million) decreases in FX Spot and FX Derivatives turnover, respectively. (See Table 1 below)
- The WoW decrease in FX Derivatives turnover was largely driven by the 62.21% ($163.73 million) decrease in FX Futures turnover, despite the 129.30% ($4.81 million) increase in FX Forwards turnover
- In the FX Spot market, the total value of transactions for the week-ended February 10, 2023, was $343.63 million, representing a decrease of 40.34% ($232.33 million) from the value of transactions executed in the week-ended February 3, 2023 ($575.96 million)
Table 1: Weekly FX Turnover Analysis
| Week-ended February 10, 2023 | Week-ended February 3, 2023 | WoW % Change | ||||
Weekly Turnover | Daily Average Turnover | % Share | Weekly Turnover | Daily Average Turnover | % Share | ||
($’million) | ($’million) | ||||||
FX Spot | 343.63 | 68.73 | 76.09 | 575.96 | 115.19 | 68.33 | (40.34) |
Forwards | 8.53 | 1.71 | 1.89 | 3.72 | 0.74 | 0.44 | 129.30 |
Futures | 99.45 | 19.89 | 22.02 | 263.18 | 52.64 | 31.22 | (62.21) |
FX Derivatives | 107.98 | 21.60 | 23.91 | 266.90 | 53.38 | 31.67 | (59.54) |
Total | 451.61 | 90.33 | 100.00 | 842.86 | 168.57 | 100.00 | (46.42) |
- In the FX Futures market, $99.45 million worth of FX Futures contracts were traded in thirteen (13) deals, representing a WoW decrease of 62.21% ($163.73 million) when compared to the $263.18 million FX Futures contracts traded in sixteen (16) deals recorded in the week-ended February 3, 2023
- For the week-ended February 10, 2023, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦461.31, compared to $/₦461.35 recorded in the week-ended February 3, 2023, representing an appreciation of the Naira against the United States (US) Dollar by 0.009% ($/₦0.04). (See Table 2 below)
Table 2: Weekly FX Rate Analysis
| Feb. 6 2023 | Feb. 7 2023 | Feb. 8 2023 | Feb. 9 2023 | Feb. 10 2023 | Weekly Average | WoW % Change | |
Feb. 10 2023 | Feb. 3 2023 | |||||||
NAFEX ($/₦) | 461.38 | 461.33 | 461.45 | 461.21 | 461.20 | 461.31 | 461.35 | 0.009 |