NAFEX Rate Appreciates by 0.009% WoW to Close at N461.25

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended March 17, 2023. Table 1 below compares weekly turnover for trades between banks (FMDQ Dealing Member (Banks)/Authorised Dealers) and their clients for the weeks-ended March 10 & 17, 2023.

In the FX Spot and Derivatives markets, the total turnover for the week-ended March 17, 2023, was $653.92 million, a decrease of 13.66% ($103.47 million) from $757.39 million reported for the week-ended March 10, 2023. The week-on-week (WoW) decrease in total turnover was jointly driven by the 5.31% ($28.69 million) and 34.41% ($74.78 million) decreases in FX Spot and FX Derivatives turnover, respectively. (See Table 1 below)

The WoW decrease in FX Derivatives turnover was jointly driven by the 45.70% ($6.37 million) and 33.63% ($68.41 million) decreases in FX Forwards and FX Futures turnover, respectively

In the FX Spot market, the total value of transactions for the week-ended March 17, 2023, was $511.36 million, representing a decrease of 5.31% ($28.69 million) from the value of transactions executed in the week-ended March 10, 2023 ($540.05 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended March 17, 2023			Week-ended March 10, 2023			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	511.36	102.27	78.20	540.05	108.01	71.30	(5.31)
Forwards	7.57	1.51	1.16	13.94	2.79	1.84	(45.70)
Futures	134.99	27.00	20.64	203.40	40.68	26.86	(33.63)
FX Derivatives	142.56	28.51	21.80	217.34	43.47	28.70	(34.41)
*Total*	*653.92*	*130.78*	*100.00*	*757.39*	*151.48*	*100.00*	(13.66)

In the FX Futures market, $134.99 million worth of FX Futures contracts were traded in fourteen (14) deals, representing a WoW decrease of 33.63% ($68.40 million) when compared to the $203.40 million FX Futures contracts traded in twenty-four (24) deals recorded in the week-ended March 10, 2023
For the week-ended March 17, 2023, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦461.25, compared to $/₦461.29 recorded in the week-ended March 10, 2023, representing an appreciation of the Naira against the United States (US) Dollar by 0.0087% ($/₦0.04). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Mar. 13 2023

Mar. 14 2023

Mar. 15 2023

Mar. 16 2023

Mar. 17 2023

Weekly Average

WoW

% Change

Mar. 17

2023

Mar. 10