FMDQ Foreign Exchange (FX) Market Analysis Report for Week-Ended July 16, 2021

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Monday, July 19, 2021 07:00 AM / by FMDQ/ Header Image Credit: Admiral Markets

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended July 16, 2021. The table following the commentary compares Spot FX weekly turnover for trades between banks (FMDQ Dealing Member (Banks) [DMBs]/Authorised Dealers) and their clients for the week ended July 9 & July 16, 2021.

 

  • In the FX Spot, Forwards and Futures markets, the total turnover for the week-ended July 16, 2021, was $767.19 million, representing an increase of 15.71% ($104.15 million) from $663.04 million reported for the week-ended July 9, 2021. The week-on-week (WoW) increase in turnover was jointly driven by the 26.07% ($135.08 million) and 20.10% ($16.62 million) increase in the FX Spot and FX Forwards turnover, respectively. (See Table 1 below)

 

  • The WoW decrease in FX Derivatives turnover was driven by the 76.38% ($47.55 million) decrease in FX Futures turnover, resulting in a 7.00 percentage points decrease in FX Derivatives' contribution to total FX market turnover to 14.86%, from 21.86% recorded in the previous week

 

  • In the Investors' & Exporters' (I&E) FX market, the total value of transactions for the week-ended July 16, 2021, was $653.18 million, representing an increase of 26.07% ($135.08 million) from the value of transactions executed in the week-ended July 9, 2021 ($518.10 million)

 

 Table 1: Weekly FX Turnover Analysis

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For the week-ended July 16, 2021, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N411.07, compared to $/N411.28 recorded in the previous week-ended July 9, 2021, representing an appreciation of the Naira against the United States (US) Dollar by 0.05% ($/N0.21)

 

  • In the parallel market, the average exchange rate remained unchanged at $/N500.00 for the week-ended July 16, 2021. Consequently, the spread between the average parallel market exchange rate and NAFEX rate increased WoW by 0.24% ($/N0.21) to $/N88.93 in the week-ended July 16, 2021, from $/N88.72 recorded in the previous week. (See Table 2 below)

 

Table 2: Weekly FX Rate Analysis

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In the FX Futures market, $14.71 million worth of FX Futures contracts were traded in four (4) deals, representing a WoW decrease of 76.38% ($47.55 million) when compared to $62.26 million traded in six (6) deals recorded in the week-ended July 9, 2021


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Previous Weekly FX Market Analysis

  1. FMDQ Foreign Exchange (FX) Market Analysis Report for Week-Ended July 9, 2021
  2. FMDQ Foreign Exchange (FX) Market Analysis Report for Week-Ended July 2, 2021
  3. Foreign Exchange (FX) Market Analysis for Week-Ended June 25, 2021
  4. Foreign Exchange (FX) Market Analysis for Week-Ended June 18, 2021
  5. Foreign Exchange (FX) Market Analysis for Week Ended June 11, 2021
  6. Foreign Exchange (FX) Market Analysis for Week Ended June 4, 2021

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Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

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