NAFEX Rate Depreciates by 0.01% WoW to Close at N461.29

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended March 10, 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 3 & 10, 2023.

In the FX Spot and Derivatives markets, the total turnover for the week-ended March 10, 2023, was $757.39 million, an increase of 103.38% ($384.98 million) from $372.41 million reported for the week-ended March 3, 2023. The week-on-week (WoW) increase in total turnover was jointly driven by the 60.71% ($204.02 million) and 497.42% ($180.96 million) increases in FX Spot and FX Derivatives turnover, respectively. (See Table 1 below)

The WoW increase in FX Derivatives turnover was jointly driven by the 8,100.00% ($13.77 million) and 461.72% ($167.19 million) increases in FX Forwards and FX Futures turnover, respectively

In the FX Spot market, the total value of transactions for the week-ended March 10, 2023, was $540.05 million, representing an increase of 60.71% ($204.02 million) from the value of transactions executed in the week-ended March 3, 2023 ($336.03 million)

Table 1: Weekly FX Turnover Analysis

	Week-ended March 10, 2023			Week-ended March 3, 2023			WoW % Change
	Weekly Turnover	Daily Average Turnover	% Share	Weekly Turnover	Daily Average Turnover	% Share
	($’million)		% Share	($’million)		% Share
FX Spot	540.05	108.01	71.30	336.03	67.21	90.23	60.71
Forwards	13.94	2.79	1.84	0.17	0.03	0.05	8,100.00
Futures	203.40	40.68	26.86	36.21	7.24	9.72	461.72
FX Derivatives	217.34	43.47	28.70	36.38	7.27	9.77	497.42
*Total*	*757.39*	*151.48*	*100.00*	*372.41*	*74.48*	*100.00*	103.38

In the FX Futures market, $203.40 million worth of FX Futures contracts were traded in twenty-four (24) deals, representing a WoW increase of 461.72% ($167.19 million) when compared to the $36.21 million FX Futures contracts traded in four (4) deals recorded in the week-ended March 3, 2023
For the week-ended March 10, 2023, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦461.29, compared to $/₦461.24 recorded in the week-ended March 3, 2023, representing a depreciation of the Naira against the United States (US) Dollar by 0.01% ($/₦0.05). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

Mar. 6 2023

Mar. 7 2023

Mar. 8 2023

Mar. 9 2023

Mar. 10 2023

Weekly Average

WoW

% Change

Mar. 10

2023

Mar. 3