NAFEX Rate Appreciates by 0.01% WoW to Close at N461.26

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended February 24, 2023. Table 1 below compares weekly turnover for trades between banks (FMDQ Dealing Member (Banks)/Authorised Dealers) and their clients for the weeks-ended February 17 & 24, 2023.

In the FX Spot and Derivatives markets, the total turnover for the week-ended February 24, 2023, was $2,151.13 million, an increase of 248.89% ($1,534.56 million) from $616.57 million reported for the week-ended February 17, 2023. The week-on-week (WoW) increase in total turnover was solely driven by the 1,422.95% ($1,610.64 million) increase in FX Derivatives turnover, offsetting the 15.11% ($76.08 million) decrease in FX Spot turnover. (See Table 1 below)

The WoW increase in FX Derivatives turnover was driven by the 1,656.20% ($1,619.27 million) increase in FX Futures turnover, despite the 55.97% ($8.63 million) decrease in FX Forwards turnover

In the FX Spot market, the total value of transactions for the week-ended February 24, 2023, was $427.30 million, representing a decrease of 15.11% ($76.08 million) from the value of transactions executed in the week-ended February 17, 2023 ($503.38 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended February 24, 2023			Week-ended February 17, 2023			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	427.30	85.46	19.86	503.38	100.68	81.64	(15.11)
Forwards	6.79	1.36	0.32	15.42	3.08	2.50	(55.97)
Futures	1,717.04	343.41	79.82	97.77	19.55	15.86	1,656.20
FX Derivatives	1,723.83	344.47	80.14	113.19	22.63	18.36	1,422.95
*Total*	*2,151.13*	*430.23*	*100.00*	*616.57*	*123.31*	*100.00*	248.89

In the FX Futures market, $1,717.04 million worth of FX Futures contracts were traded in thirty-two (32) deals, representing a WoW increase of 1,656.20% ($1,619.27 million) when compared to the $97.77 million FX Futures contracts traded in ten (10) deals recorded in the week-ended February 17, 2023
For the week-ended February 24, 2023, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦461.26, compared to $/₦461.31 recorded in the week-ended February 17, 2023, representing an appreciation of the Naira against the United States (US) Dollar by 0.01% ($/₦0.05). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Feb. 20 2023

Feb. 21 2023

Feb. 22 2023

Feb. 23 2023

Feb. 24 2023

Weekly Average

WoW

% Change

Feb. 24

2023

Feb. 17