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

Forex
840 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp
Proshare

Monday, August 30, 2021 07:00 AM / by FMDQ/ Header Image Credit:  Aboki FX

 

Below is the commentary on the Foreign Exchange (FX) market with data for the week-ended August 27, 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 20 & 27, 2021. 


  • In the FX Spot and Derivatives markets, the total turnover for the week-ended August 27, 2021, was $949.91 million, representing an increase of 76.08% ($410.44 million) from $539.47 million reported for the week-ended August 20, 2021. The week-on-week (WoW) increase in turnover was driven by the 59.37% ($246.43 million) and 131.82% ($164.01 million) increase in the FX Spot and FX Derivatives turnover, respectively. (See Table 1 below)
  • The WoW increase in FX Derivatives turnover was jointly driven by the $154.79 million and 7.41% ($9.22 million) increase in FX Futures and FX Forwards turnover respectively, resulting in an increase in FX Derivatives' contribution to total FX market turnover to 30.36%, from 23.06% recorded in the previous week
  • In the Investors' & Exporters' (I&E) FX market, the total value of transactions for the week-ended August 27, 2021, was $661.48 million, representing an increase of 59.37% ($246.43 million) from the value of transactions executed in the week-ended August 20, 2021 ($415.05 million)


Table 1: Weekly FX Turnover Analysis

Proshare Nigeria Pvt. Ltd.



For the week-ended August 27, 2021, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N411.28, compared to $/N411.22 recorded in the previous week-ended August 20, 2021, representing a depreciation of the Naira against the United States (US) Dollar by 0.01% ($/N0.06)


  • In the parallel market, the Naira depreciated against the US Dollar by 0.54% ($/N2.80) for the week-ended August 27, 2021, at an average exchange rate of $/N518.60, compared to the $/N515.80 recorded in the previous week. Consequently, the spread between the average parallel market exchange rate and NAFEX rate increased WoW by 2.62% ($/N2.74) to $/N107.32 in the week-ended August 27, 2021, from $/N104.58 recorded in the previous week. (See Table 2 below)


 

Table 2: Weekly FX Rate Analysis


Proshare Nigeria Pvt. Ltd.



  •  In the FX Futures market, $154.79 million worth of FX Futures contracts were traded in eleven (11) deals
  • Still in the FX Futures market, the 62nd FX Futures contract, NGUS AUG 25 2021, matured and settled on FMDQ Exchange on Wednesday, August 25, 2021. The quotes for all sixty (60) monthly contracts are published daily on FMDQ's website: www.fmdqgroup.com

 Proshare Nigeria Pvt. Ltd.


Previous Weekly FX Market Analysis

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

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

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

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

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

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

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

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

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

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

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

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


 Proshare Nigeria Pvt. Ltd.


Related News

13.  A Sharp Fall in the CBN's Supply of FX

14.  Gross Official Reserves Rose by US79m to US33.4bn in July 2021

15.  Expect Increasing FX Rates Convergence in Coming Months

16.  Examining the Impact of Exchange Rate Volatility in Nigeria

17.  The New Forex Ban and its Short Term Market Reaction

18.  Ecobank Nigeria Assures Customers Of Smooth Forex Transaction

19.  Nigeria's Exchange Rate Management Should Be Free From Political Interference

20. BDC Market Implodes as the CBN Stops Sale of Dollars to the Parallel Market

21.  CBN to Refund Minimum Capital Deposits and Licensing Fees to BDC Promoters

22. CBN Directs DMBs to Set up Teller Points at Bank Branches for the Sale of FX To Retail Customers

 

 

 Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP