FMDQ market report

Commentary on the foreign exchange (FX) market with data for the week-ended October 29, 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 October 26, 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 the results for its auction of Chinese Renminbi (¥) and US Dollar under the Bilateral Currency Swap Agreement (BCSA), as well as the result of its SMIS – Retail intervention held on October 19, 2018

▪In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades recorded for the week- ended October 19, 2018 stood at $0.88 billion, representing a decrease of 6.38% ($0.06 billion) when compared to the $0.94 billion traded in the previous week and bringing the total value traded at the window year-to-date to $48.28 billion

▪For the reporting week-ended October 26, 2018, the CBN official rate rose by ₦0.05 to close at $/₦306.55, indicating a 0.02% depreciation when compared to $/₦306.50 recorded the previous week-ended October 19, 2018

▪In the Bureau de Change (BDC) market, still at the end of the reporting week, the exchange rate remained unchanged to close at $/₦362.00

▪Also, for the week-ended October 26, 2018, the Naira appreciated at the I&E FX Window, gaining ₦0.18 to close at $/₦363.84 when compared to $/₦364.02 recorded the previous week, resulting in a spread of $/₦1.84 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 fell by ₦0.05 to close at $/₦55.45, indicating a 0.09% decrease from the $/₦55.50recorded in the previous week

▪In the FX Futures market, $164.99 million worth of OTC FX Futures contracts were traded in eighteen (18) deals, compared to the total for the previous week-ended October 19, 2018 of $133.74 million traded in fourteen (14) deals

▪The 28th OTC FX Futures contract, NGUS OCT 31 2018, with open contract of $371.49 million will mature and settle on FMDQ on Wednesday, October 31, 2018
Dealing Member-Client Spot FX Market Turnover Report

▪For the week-ended October 19, 2018, trading activity in the Spot FX market between the DMBs and their clients stood at $1,053.51 million (average daily turnover of $210.70 million), representing a decrease of 14.82% when compared to the $1,236.83 million (average daily turnover of $247.37 million), recorded the week-ended October 12, 2018

▪A review of trading activity in the Spot FX market amongst banks for the week-ended October 19, 2018, revealed a decrease of 6.21%, as a total turnover of $377.72 million (average daily turnover of $75.55 million) was recorded, against $402.72 million (average daily turnover of $80.54 million) reported the week-ended October 12, 2018.