FMDQ weekly report

Commentary on the Foreign Exchange (FX) market with data for the week-ended March 15, 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 March 12, 2019.

The apex bank also 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 March 8, 2019, closed at $2.67 billion, representing a decrease of 37.62% ($1.61 billion) when compared to the $4.28 billion reported in the previous week ending March 1, 2019, bringing the year-to-date (YTD) value of trades at the window to $15.63 billion

▪ For the reporting week-ended March 15, 2019, the CBN official rate rose by ₦0.05 to close at $/₦306.95, indicating a 0.02% depreciation when compared to $/₦306.90 recorded the previous week-ended March 8, 2019

▪ In the Bureau-de-Change (BDC) market, the exchange rate remained unchanged at $/₦360.00

▪ For the week-ended March 15, 2019, the Naira appreciated at the I&E FX Window, gaining ₦0.24 to close at $/₦360.18 when compared to $/₦360.42 recorded the previous week, resulting in a spread of $/₦0.18 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 ₦0.05 to close at $/₦53.05, indicating a decrease of 0.09% from the $/₦53.10 recorded in the previous week

▪ In the OTC FX Futures market, $588.74 million worth of OTC FX Futures contracts were traded in thirty-eight (38) deals, compared to the total for the previous week-ended March 8, 2019 of $316.75 traded in twenty-two (22) deals.
Dealing Member-Client Spot FX Market Turnover Report

▪ For the week-ended March 8, 2019, trading activities in the Spot FX market between the DMBs and their clients stood at $2,760.93 million (average daily turnover of $552.19 million), representing a decrease of 31.91% when compared to the $4,054.78 million (average daily turnover of $810.96 million), recorded the week-ended March 1, 2019

▪ A review of trading activities in the Spot FX market amongst banks for the week-ended March 8, 2019, revealed a decrease of 31.41%, as a total turnover of $395.20 million (average daily turnover of $79.04 million) was recorded, against $576.14 million (average daily turnover of $115.23 million) reported the week-ended March 1, 2019