FMDQ weekly report

Commentary on the Foreign Exchange (FX) market with data for the week-ended July 19, 2019.

▪ The Central Bank of Nigeria (CBN) intervened through its periodic supply of United States (US) dollars in the FX market, offering a total of $100.00 million to the Secondary Market Intervention Sales (SMIS) Wholesale window on July 16, 2019.

The apex bank sold $55.00 million each to both the Small and Medium-scale Enterprises (SMEs) and the Retail (Invisibles) segment; and also released the results for its auction of Chinese Renminbi and US Dollar under the Bilateral Currency Swap Agreement (BCSA) and SMIS – Retail held on July 12, 2019, selling ¥39.60 million and $298.70 million at both sessions respectively

▪ In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week-ended July 12, 2019, closed at $0.65 billion, representing a decrease of 45.83% ($0.55 billion) when compared to the $1.20 billion reported in the previous week-ended July 5, 2019, bringing the year-to-date (YTD) value of trades at the window to $36.51 billion

▪ For the reporting week-ended July 19, 2019, the CBN official rate fell by ₦0.05 to close at $/₦306.95, indicating a 0.02% appreciation when compared to $/₦307.00 recorded the previous week-ended July 12, 2019

▪ In the Bureau-de-Change (BDC) market, the exchange rate fell by ₦0.50 to close at $/₦360.00 representing, a 0.14% appreciation when compared to $/₦360.50 recorded in the previous week ended July 12, 2019

▪ Still, for the week-ended July 19, 2019, the Naira depreciated at the I&E FX Window, losing ₦0.67 to close at $/₦361.46 when compared to $/₦360.79 recorded the previous week, resulting in a spread of $/₦1.46 between the BDC market rate and I&E FX Window rate

▪ Also, the spread between the BDC market rate and the CBN official exchange rate fell by ₦0.45 to close at $/₦53.05, indicating a decrease of 0.84% from the $/₦53.50 recorded in the previous week

▪ In the OTC FX Futures market, $93.00 million worth of OTC FX Futures contracts were traded in ten (10) deals, compared to the total of $115.13 million traded in eight (8) deals for the previous week-ended July 12, 2019.
Dealing Member-Client Spot FX Market Turnover Report

▪ For the week ended July 12, 2019, trading activities in the Spot FX market between the DMBs and their clients stood at $1,220.27 million (average daily turnover of $244.05 million), representing a decrease of 17.39% when compared to the $1,477.06 million (average daily turnover of $295.41 million), recorded the previous week-ended July 5, 2019

▪ A review of trading activities in the Spot FX market amongst banks for the week ended July 12, 2019, revealed a decrease of 16.04%, as a total turnover of $248.24 million (average daily turnover of $49.65 million) was recorded, against $295.68 million (average daily turnover of $59.14 million) reported the week-ended July 5, 2019.