FMDQ weekly report

Commentary on the Foreign Exchange (FX) market with data for the week-ended February 1, 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 $210.00 million to the FX market via the Secondary Market Intervention Sales (SMIS) held on January 29, 2019.

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

In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week-ended January 25, 2019, closed at $1.24 billion, representing an increase of 313.33% ($0.94 billion) when compared to the $0.30 billion reported in the previous week ending January 18, 2019, bringing the year-to-date (YTD) value of trades at the window to $3.00 billion

▪ For the reporting week-ended February 1, 2019, the CBN official rate fell by ₦0.05 to close at $/₦306.75, indicating a 0.02% appreciation when compared to $/₦306.80 recorded the previous week-ended January 25, 2019

▪ In the Bureau-de-Change (BDC) market, the exchange rate fell by ₦3.50 to close at $/₦361.00 depicting a 0.96% appreciation when compared to $/₦364.50 recorded in the previous week- ended January 25, 2019

▪ For the week-ended February 1, 2019, the Naira depreciated at the I&E FX Window, losing ₦0.25 to close at $/₦362.71 when compared to $/₦362.46 recorded the previous week, resulting in a spread of $/₦1.71 between the BDC and I&E FX Window rate

▪ The spread between the BDC market rate and the CBN official exchange rate fell by ₦3.45 to close at $/₦54.25, indicating a 5.98% decrease from the $/₦57.70 recorded in the previous week

▪ In the OTC FX Futures market, $298.06 million worth of OTC FX Futures contracts were traded in twenty-eight (28) deals, compared to the total for the previous week-ended January 25, 2019 of $174.81 million contracts traded in eighteen (18) deals

▪ Dealing Member-Client Spot FX Market Turnover Report

▪ For the week-ended January 25, 2019, trading activities in the Spot FX market between the DMBs and their clients stood at $1,370.44 million (average daily turnover of $274.09 million), representing a decrease of 20.98% when compared to the $1,734.25 million (average daily turnover of $364.86 million), recorded the week-ended January 18, 2019

▪ A review of trading activities in the Spot FX market amongst banks for the week-ended January 25, 2019, revealed a decrease of 9.64%, as a total turnover of $356.25 million (average daily turnover of $71.25 million) was recorded, against $394.25 million (average daily turnover of $78.85 million) reported the week-ended January 18, 2019.