NAFEX Rate Appreciated by 0.04% WoW to N413.45

Monday, November 22, 2021 07:50 AM / by FMDQ/ Header
Image Credit: Instarem

Below is the commentary on
the Foreign Exchange (FX) market with data for the week-ended November 19,
2021. The table following the commentary compares weekly turnover for trades
between banks (FMDQ Dealing Member (Banks) [DMBs]/Authorised Dealers) and their
clients for the weeks-ended November 12 & 19, 2021.  

• In
  the FX Spot and Derivatives markets, the total turnover for the week-ended
  November 19, 2021, was $683.17 million, representing a decrease of 9.01%
  ($67.61 million) from $750.79 million reported for the week-ended November
  12, 2021. The week-on-week (WoW) decrease in total turnover was driven by
  the 1.35% ($7.34 million) and 29.26% ($60.27 million) decreases in FX Spot
  and FX Derivatives turnover, respectively. (See Table 1 below)

• The
  WoW decrease in FX Derivatives turnover was driven by the 39.03% ($78.16 million) decrease in FX
  Forwards turnover, despite the 313.76% ($17.88 million) increase in FX
  Futures turnover

• In
  the FX Spot market, the total value
  of transactions for the week-ended November 19,
  2021, was $537.48 million, representing a decrease of 1.35% ($7.34 million) from the value of transactions
  executed in the week-ended November 12, 2021 ($544.82 million)

     Table 1: Weekly FX
Turnover Analysis

For the
week-ended November 19, 2021, the average Nigerian Autonomous Foreign Exchange
Fixing (NAFEX) was $/N413.45, compared to $/N413.62 recorded in the week-ended November
12, 2021, representing an appreciation of the Naira against the United States
(US) Dollar by 0.04% ($/N0.17). (See Table 2 below)

Table 2: Weekly FX Rate Analysis

• In the FX Futures market,
  $20.43 million worth of FX Futures contracts were traded in four (4)
  deals, representing a WoW increase of 423.96% ($16.53 million) when
  compared to $3.90 million FX Futures contracts traded in two (2) deals
  recorded in the week-ended November 12, 2021

Related News

1.     NAFEX Rate
Closes Flat WoW

2.     NAFEX Rate
Appreciated by 0.69% WoW to N413.62 from N416.48

3.     NAFEX Rate
Depreciated by 0.74% WoW to N416.48 from N413.43

4.     NAFEX Rate
Depreciated Marginally by 0.01% WoW to N413.43 from N413.40

5.     NAFEX Rate
Depreciated by 0.10% WoW to N413.40 from N412.98

6.     NAFEX Rate
Depreciated by 0.13% WoW to N412.48 from N411.95

7.     NAFEX Rate
Depreciated by 0.17% WoW to N411.95 from N411.25

8.     Naira
Depreciated by 1.10% WoW in the Parallel Market at an Average Exchange Rate of
N532.00

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

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

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

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

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

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

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

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