Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended January 6, 2023. 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 December 30, 2022, & January 6, 2023.

• In the FX Spot and Derivatives markets, the total turnover for the week-ended January 6, 2023, was $406.39 million, representing a decrease of 32.09% ($192.02 million) from $598.41 million reported for the week-ended December 30, 2022. The week-on-week (WoW) decrease in total turnover was solely driven by the 42.75% ($217.60 million) decrease in FX Spot turnover despite the 28.62% ($25.58 million) increase in FX Derivatives turnover. (See Table 1 below)

• The WoW increase in FX Derivatives turnover was majorly driven by the 1,338.28% ($73.07 million) increase in FX Forwards turnover, which offset the 56.60% ($47.49 million) decrease in FX Futures turnover 

• In the FX Spot market, the total value of transactions for the week-ended January 6, 2023, was $291.44 million, representing a decrease of 42.75% ($217.60 million) from the value of transactions executed in the week-ended December 30, 2022 ($509.04 million)

   Table 1: Weekly FX Turnover Analysis 

• In the FX Futures market, $36.42 million worth of FX Futures contracts were traded in four (4) deals, representing a WoW decrease of 56.60% ($47.49 million) when compared to the $83.91 million FX Futures contracts traded in seven (7) deals recorded in the week-ended December 30, 2022

• For the week-ended January 6, 2023, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦461.01 compared to $/₦459.92, recorded in the week-ended December 30, 2022, representing a depreciation of the Naira against the United States (US) Dollar by 0.24% ($/₦1.09). (See Table 2 below)

Table 2: Weekly FX Rate Analysis