NAFEX Rate Depreciated by 0.002% WoW to N461.35

Below is the commentary below on the Foreign Exchange (FX) market with data for the week-ended February 3, 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 January 27 & February 3, 2023.

In the FX Spot and Derivatives markets, the total turnover for the week-ended February 3, 2023, was $842.86 million, an increase of 9.98% ($76.50 million) from $766.36 million reported for the week-ended January 27, 2023. The week-on-week (WoW) increase in total turnover was solely driven by a 16.92% ($83.35 million) increase in FX Spot turnover, offsetting the 2.50% ($6.85 million) decrease in FX Derivatives turnover. (See Table 1 below)

The WoW decrease in FX Derivatives turnover was jointly driven by the 23.30% ($1.13 million) and 2.13% ($5.72 million) decreases in FX Forwards and FX Futures turnover, respectively

In the FX Spot market, the total value of transactions for the week-ended February 3, 2023, was $575.96 million, representing an increase of 16.92% ($83.35 million) from the value of transactions executed in the week-ended January 27, 2023 ($492.61 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended February 3, 2023			Week-ended January 27, 2023			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	575.96	115.19	68.33	492.61	98.52	64.28	16.92
Forwards	3.72	0.74	0.44	4.85	0.97	0.63	(23.30)
Futures	263.18	52.64	31.22	268.90	53.78	35.09	(2.13)
FX Derivatives	266.90	53.38	31.67	273.75	54.75	35.72	(2.50)
Total	842.86	168.57	100.00	766.36	153.27	100.00	9.98

In the FX Futures market, $263.18 million worth of FX Futures contracts were traded in sixteen (16) deals, representing a WoW decrease of 2.13% ($5.72 million) when compared to the $268.90 million FX Futures contracts traded in twenty (20) deals recorded in the week-ended January 27, 2023
For the week-ended February 3, 2023, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦461.35, compared to $/₦461.34 recorded in the week-ended January 27, 2023, representing a depreciation of the Naira against the United States (US) Dollar by 0.002% ($/₦0.01). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Jan. 30 2023

Jan. 31 2023

Feb. 1 2023

Feb. 2 2023

Feb. 3 2023

Weekly Average

WoW

% Change

Feb. 3

2023

Jan. 27