FMDQ market report

FMDQ OTC Securities Exchange

Commentary on the foreign exchange (FX) market with data for the week-ended September 28, 2018.

▪ The Central Bank of Nigeria (CBN) intervened through its periodic supply of United States (US) Dollars in the FX market, offering $100.00 million via a Single Secondary Market Intervention Sales (SMIS) – Wholesale auction held during the week-ended September 28, 2018.

The apex bank also maintained its intervention for Small and Medium-Scale Enterprises (SMEs) & Retail Invisible transactions supplying $55.00 million each for both interventions.

Furthermore, the CBN released its auction result of Chinese Renminbi (¥) under the Bilateral Currency Swaps Agreement (BCSA), as well as the result of its SMIS – Retail intervention held on September 21, 2018

▪ In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades recorded for the week- ended September 21, 2018 stood at $1.53 billion, representing a decrease of 28.50% ($0.61billion) when compared to the $2.14 billion traded in the previous week, and bringing the total value traded at the window year-to-date to $44.34 billion

▪For the reporting week- ended September 28, 2018, the CBN official rate rose by ₦0.05 to close at $/₦306.35, indicating a 0.02% depreciation when compared to $/₦306.30 recorded the previous week-ended September 14, 2018

▪ In the Bureau de Change (BDC) market, still at the end of the reporting week, the exchange rate closed at $/₦361.00, indicating a 0.14% depreciation when compared to $/₦360.50 recorded the previous week-ended September 21, 2018

Also for the week- ended September 28, 2018, the Naira depreciated at the I&EFX Window, losing ₦0.24 to close at $/₦363.92 when compared to $/₦363.68 recorded the previous week, resulting in a spread of $/₦2.92 between the BDC market rate and I&E FX Window rate

▪ On the other hand, the spread between the BDC market rate and the CBN official exchange rate rose by ₦0.45 to close at $/₦54.65, indicating a 0.83% increase from the $/₦54.20 recorded in the previous week

▪ In the FX Futures market, $472.98 million worth of OTC FX Futures contracts were traded in twenty-seven (27) deals, compared to the total for the previous week-ended September 14, 2018 of $225.82 million traded in twenty-eight (28) deals

▪ Still in the FX Futures market, the 27th OTC FX Futures contract, NGUS SEP 26 2018, with contract amount $830.66 million matured and settled on FMDQ on Wednesday, September 26, 2018.

The CBN introduced a new contract, NGUS SEP 18 2019 for $1.00 billion at $/₦365.62, to replace the matured contract and refreshed its quotes on the existing 1- to 11-month contracts

Dealing Member-Client Spot FX Market Turnover Report

▪ For the week-ended September 21, 2018, trading activity in the Spot FX market between the DMBs and their clients stood at $1,865.53 million (average daily turnover of $373.11 million), representing a decrease of 17.92% when compared to the $2,272.75 million (average daily turnover of $454.55 million), recorded the week-ended September 14, 2018

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