FMDQ weekly report

Commentary on the Foreign Exchange (FX) market with data for the week-ended January 4, 2019.

▪ The Central Bank of Nigeria (CBN) intervened through its periodic injection of United States (US) Dollars in the FX market, offering a total of $210.00 million to the FX market via the Secondary Market Intervention Sales (SMIS) held on January 2, 2019.

The apex bank offered the sum of $100.00 million to the Wholesale segment and sold $55.00 million each to both the Small and Medium-scale Enterprises (SMEs) and Retail (Invisibles) transactions.

▪ In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week-ended December 28, 2018 was $0.51 billion, representing a 65.07% ($0.95 billion) decrease on the $1.46 billion reported in the previous week, bringing the year-to-date (YTD) value of trades at the window to $59.75 billion

▪ For the reporting week-ended January 4, 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 December 28, 2018

▪ In the Bureau de Change (BDC) market, the exchange rate fell by ₦1.50 to close at $/₦362.00 depicting a 0.41% appreciation when compared to $/₦363.50 recorded in the previous week-ended December 28, 2018

▪ For the week-ended January 4, 2019, the Naira depreciated at the I&E FX Window, losing ₦0.85 to close at $/₦365.35 when compared to $/₦364.50 recorded the previous week, resulting in a spread of $/₦3.35 between the BDC market rate and I&E FX Window rate

▪ The spread between the BDC market rate and the CBN official exchange rate fell by ₦1.45 to close at $/₦55.05, indicating a 2.57% decrease from the $/₦56.50 recorded in the previous week

▪ On December 26, 2018, the 30th OTC FX Futures contract NGUS DEC 26 2018, with contract amount of $664.78 million matured and settled on FMDQ; bringing the total value of matured OTC FX Futures contracts on FMDQ since the inception of the market in June 2016 to over $13.00 billion and over $17.00 billion worth of contracts traded so far

▪ Still in the FX Futures market, $72.50 million worth of OTC FX Futures contracts were traded in 11 deals, compared to the total for the previous week-ended December 28, 2018 of $165.47 million traded in 25 deals
Dealing Member-Client Spot FX Market Turnover Report

▪ For the week-ended December 28, 2018, trading activities in the Spot FX market between the DMBs and their clients stood at $1,253.46 million (average daily turnover of $417.82 million), representing a decrease of 29.11% when compared to the $ 1,768.22 million (average daily turnover of $353.64 million) recorded the week-ended December 21, 2018

▪ A review of trading activities in the Spot FX market amongst banks for the week-ended December 28, 2018, revealed a decrease of 26.32%, as a total turnover of $258.92 million (average daily turnover of $86.31 million) was recorded against the $351.43 million (average daily turnover of $70.29 million) reported the week-ended December 21, 2018.