Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended November 18, 2022. The table following the commentary compares weekly turnover for trades between banks (FMDQ Dealing Member (Banks) [DMBs]/Authorised Dealers) and their clients for the weeks ended November 11, 2022 & November 18, 2022.

• In the FX Spot and Derivatives markets, the total turnover for the week-ended November 18, 2022, was $494.84 million, representing a decrease of 37.20% ($293.14 million) from $787.98 million reported for the week-ended November 11, 2022. The week-on-week (WoW) decrease in total turnover was jointly driven by the 38.13% ($271.56 million) and 28.47% ($21.58 million) decreases in FX Spot and FX Derivatives turnovers respectively. (See Table 1 below)

• The WoW decrease in FX Derivatives turnover was solely driven by the 43.59% ($30.91 million) decrease in FX Futures turnover despite the 190.41% ($9.33 million) increase in FX Forwards turnover 

• In the FX Spot market, the total value of transactions for the week-ended November 18, 2022, was $440.61 million, representing a decrease of 38.13% ($271.56 million) from the value of transactions executed in the week-ended November 11, 2022 ($712.17 million)

Table 1: Weekly FX Turnover Analysis 

• In the FX Futures market, $40.00 million worth of FX Futures contracts were traded in seven (7) deals, representing a WoW decrease of 43.59% ($30.91 million) when compared to the $70.91 million FX Futures contracts traded in twelve (12) deals recorded in the week-ended November 11, 2022

• For the week-ended November 18, 2022, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦444.42 compared to $/₦443.87, recorded in the week-ended November 11, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.12% ($/₦0.55). (See Table 2 below)

Table 2: Weekly FX Rate Analysis