Foreign Exchange (FX) Market Analysis for Week-Ended June 25, 2021

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Monday, June 28, 2021 07:00 AM / by FMDQ/ Header Image Credit: DailyFX

 

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended June 25, 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 June 18 & June 25, 2021.

 

  • In the FX Spot, Forwards and Futures markets, the total turnover for the week-ended June 25, 2021, was $808.02 million, representing an increase of 38.39% ($224.14 million) from $583.88 million reported for the week-ended June 18, 2021. The week-on-week (WoW) increase in turnover was driven largely by the 25.47% ($124.59 million) increase in the FX Spot turnover. (See Table 1 below)
  • The WoW increase in FX Derivatives turnover was driven by the increase of 519.30% ($94.46 million) increase FX Futures turnover, resulting in a 7.82 percentage points increase in FX Derivatives' contribution to total FX market turnover from 16.22% recorded in the previous week to 24.04%
  • In the Investors' & Exporters' (I&E) FX market, the total value of transactions for the week-ended June 25, 2021, was $613.78 million, representing an increase of 25.47% ($124.59 million) from 489.19 million in the week-ended June 18, 2021

 Table 1: Weekly FX Turnover Analysis

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  • For the week-ended June 25, 2021, the weekly average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N410.85 compared to $/N410.33 recorded in the previous week-ended June 18, 2021, representing a depreciation of the Naira against the United States (US) Dollar by $/N0.52 
  • In the parallel market, the Naira appreciated against the US Dollar by $/N2.25 to close the week-ended June 25, 2021, at an average rate of $/N494.00, representing a 0.45% appreciation when compared to $/N496.25 recorded in the previous week. Consequently, the spread between the weekly average parallel market and NAFEX rate decreased WoW by 3.22% ($/N2.77) to $/N83.15 in the week-ended June 25, 2021, from $/N85.93 recorded in the previous week. (See Table 2 below)

Table 2: Weekly FX Rate Analysis

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  • In the FX Futures market, $112.65 million worth of FX Futures contracts were traded in eleven (11) deals, representing a WoW increase of 519.30% ($94.46 million) when compared to $18.19 million traded in seven (7) deals recorded in the week-ended June 18, 2021
  • Still in the FX Futures market, the 60th FX Futures contract, NGUS JUN 30 2021, is set to mature and settle on FMDQ Exchange on Wednesday, June 30, 2021. The quotes for all sixty (60) monthly contracts can be found on the FMDQ Website

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Previous Weekly FX Market Analysis

  1. Foreign Exchange (FX) Market Analysis for Week-Ended June 18, 2021
  2. Foreign Exchange (FX) Market Analysis for Week Ended June 11, 2021
  3. Foreign Exchange (FX) Market Analysis for Week Ended June 4, 2021

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