IEFX Total Transaction Value Decreased by 4.86% to $629.34m

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Monday, September 06, 2021 07:00 AM / by FMDQ/ Header Image Credit: Business Post

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended September 3, 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 August 27 & September 3, 2021.

 

  • In the FX Spot and Derivatives markets, the total turnover for the week-ended September 3, 2021, was $1,057.35 million, representing an increase of 11.31% ($107.44 million) from $949.91 million reported for the week-ended August 27, 2021. The week-on-week (WoW) increase in turnover was solely driven by the 48.39% ($139.59 million) increase in FX Derivatives turnover. (See Table 1 below)

 

  • The WoW increase in FX Derivatives turnover was driven by the 217.79% ($291.05 million) increase in FX Forwards turnover, despite the 97.85% ($151.46 million) decrease in FX Futures turnover, resulting in an increase in FX Derivatives' contribution to total FX market turnover to 40.48%, from 30.36% recorded in the previous week

 

  • In the Investors' & Exporters' (I&E) FX market, the total value of transactions for the week-ended September 3, 2021, was $629.34 million, representing a decrease of 4.86% ($32.14 million) from the value of transactions executed in the week-ended August 27, 2021 ($661.48 million)

 

 Table 1: Weekly FX Turnover Analysis

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For the week-ended September 3, 2021, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N411.29, compared to $/N411.28 recorded in the previous week-ended August 27, 2021, representing a depreciation of the Naira against the United States (US) Dollar by 0.00%* ($/N0.01)

 

  • In the parallel market, the Naira depreciated against the US Dollar by 1.47% ($/N7.60) for the week-ended September 3, 2021, at an average exchange rate of $/N526.20, compared to the $N518.60 recorded in the previous week. Consequently, the spread between the average parallel market exchange rate and NAFEX rate increased WoW by 7.07% ($/N7.59) to $/N114.91 in the week-ended September 3, 2021, from $/N107.32 recorded in the previous week. (See Table 2 below)

 

Table 2: Weekly FX Rate Analysis

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In the FX Futures market, $3.33 million worth of FX Futures contracts was traded in one (1) deal, representing a WoW decrease of 97.85% ($151.46 million) when compared to $154.79 million traded in eleven (11) deals recorded in the week-ended August 27, 2021

*0.002%


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Previous Weekly FX Market Analysis

1.      Naira Depreciated at the Parallel Market by -0.54% WoW to N518.60 from N515.80

2.     Naira Depreciated at the Parallel Market by -1.02% WoW to N515.80 from N510.60

3.     NAFEX Rate Depreciated by -0.003% WoW to N411.17 from N411.16

4.     Naira Appreciated by 0.23% WoW in the Parallel Market at an Average Exchange Rate of N510.80

5.     Naira Depreciated by -2.40% WoW in the Parallel Market at an Average Exchange Rate of N512

6.     IEFX Market Total Transactions Value Decreased by $325.65m WoW, Representing 49.86% Decline - FMDQ

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

8.     FMDQ Foreign Exchange (FX) Market Analysis Report for Week-Ended July 9, 2021

9.     FMDQ Foreign Exchange (FX) Market Analysis Report for Week-Ended July 2, 2021

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

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

12.  Foreign Exchange (FX) Market Analysis for Week Ended June 11, 2021

13.  Foreign Exchange (FX) Market Analysis for Week Ended June 4, 2021

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