NAFEX Rate Depreciated by 0.17% WoW to N411.95 from N411.25

Monday, September 20, 2021 07:00 AM / by FMDQ/
Header Image Credit: Alamy Stock Photo

Below
is the commentary on the Foreign Exchange (FX) market with data for the
week-ended September 17, 2021. The table following the commentary
compares Spot FX weekly turnover for trades between banks (FMDQ Dealing Member
(Banks) [DMBs]/Authorised Dealers) and their clients for the weeks ended
September 10 & 17, 2021.

• In the FX Spot and Derivatives
  markets, the total turnover for the week-ended September 10, 2021, was
  $1,363.33 million, representing an increase of 55.47% ($486.42 million)
  from $876.91 million reported for the week-ended September 10, 2021. The
  week-on-week (WoW) increase in total turnover was driven by the 52.28%
  ($272.28 million) and 60.13% ($214.14 million) increases in FX Spot and FX
  Derivatives turnover, respectively. (See Table 1 below)

• The WoW increase in FX
  Derivatives turnover was driven by the 51.26% ($96.35 million) and 70.04%
  ($117.80 million) increases in FX Forwards and FX Futures respectively

• In the FX Spot market, the
  total value
  of transactions for
  the week-ended September 17, 2021, was $793.04 million, representing an
  increase of 52.28% ($272.28 million) from
  the value of transactions executed in the week-ended September 10, 2021
  ($520.77 million)

 Table
1: Weekly FX Turnover Analysis

For the
week-ended September 17, 2021, the average Nigerian Autonomous Foreign Exchange
Fixing (NAFEX) rate was $/N411.95, compared to $/N411.25
recorded in the previous week-ended September 10, 2021, representing a
depreciation of the Naira against the United States (US) Dollar by 0.17% ($/N0.70)

Table 2: Weekly FX Rate Analysis

• In
  the FX Futures market, $268.00 million worth of FX Futures contracts were
  traded in eleven (11) deals, representing a WoW increase of 70.04%
  ($117.80 million) when compared to $168.20 million FX Futures contracts
  traded in eight (8) deals recorded in the week-ended September 10, 2021

Previous Weekly FX Market Analysis

1.    
Naira Depreciated by 1.10% WoW in the Parallel Market
at an Average Exchange Rate of N532.00

2.    
IEFX Total Transaction Value Decreased by 4.86% to
$629.34m

3.    
Naira Depreciated at the Parallel Market by -0.54%
WoW to N518.60 from N515.80

4.    
Naira Depreciated at the Parallel Market by -1.02%
WoW to N515.80 from N510.60

5.    
NAFEX Rate Depreciated by -0.003% WoW to N411.17 from
N411.16

6.    
Naira Appreciated by 0.23% WoW in the Parallel Market
at an Average Exchange Rate of N510.80

7.    
Naira Depreciated by -2.40% WoW in the Parallel
Market at an Average Exchange Rate of N512

8.    
IEFX Market Total Transactions Value Decreased by
$325.65m WoW, Representing 49.86% Decline – FMDQ

9.    
FMDQ Foreign Exchange (FX) Market Analysis Report for
Week-Ended July 16, 2021

10.
FMDQ Foreign Exchange (FX) Market Analysis Report for
Week-Ended July 9, 2021

11.
FMDQ
Foreign Exchange (FX) Market Analysis Report for Week-Ended July 2, 2021

12.
Foreign Exchange (FX) Market Analysis for Week-Ended
June 25, 2021

13.
Foreign
Exchange (FX) Market Analysis for Week-Ended June 18, 2021

14.
Foreign Exchange (FX) Market Analysis for Week Ended
June 11, 2021

15.
Foreign Exchange (FX) Market Analysis for Week Ended
June 4, 2021

16.
Parallel Market
Pressures: No End in Sight?

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