FMDQ market report

Commentary on the foreign exchange (FX) market with data for the week-ended October 19, 2018.

▪ The Central Bank of Nigeria (CBN) intervened through its periodic supply of United States (US) Dollars in the FX market, offering $100.00 million via a Single Secondary Market Intervention Sales (SMIS) – Wholesale auction held during the week-ended October 19, 2018. The apex bank also maintained its intervention for Small and Medium-scale Enterprises (SMEs) & Retail Invisible transactions supplying $55.00 million each for both interventions

▪ In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades recorded for the week- ended October 12, 2018 stood at $0.94 billion, representing a decrease of 4.08% ($0.04 billion) when compared to the $0.98 billion traded in the previous week and bringing the total value traded at the window year-to-date to $47.40 billion

▪ For the reporting week-ended October 19, 2018, the CBN official rate rose by ₦0.05 to close at $/₦306.50, indicating a 0.02% depreciation when compared to $/₦306.45 recorded the previous week-ended October 12, 2018

▪ In the Bureau de Change (BDC) market, still at the end of the reporting week, the exchange rate remained unchanged to close at $/₦362.00
Also,for the week ended October19,2018, the Naira appreciated at the I&E FX Window, gaining ₦0.10 to close at $/₦364.02 when compared to $/₦364.12 recorded the previous week, resulting in a spread of $/₦2.02 between the BDC market rate and I&E FX Window rate

▪ On the other hand, the spread between the BDC market rate and the CBN official exchange rate fell by ₦0.05 to close at $/₦55.50, indicating a 0.09% decrease from the $/₦55.55 recorded in the previous week

▪ In the FX Futures market, $133.74 million worth of OTC FX Futures contracts were traded in fourteen (14) deals, compared to the total for the previous week-ended October 12, 2018 of $171.73 million traded in twenty-five (25) deals.

Dealing Member-Client Spot FX Market Turnover Report

▪ For the week-ended October 12, 2018, trading activity in the Spot FX market between the DMBs and their clients stood at $1,236.83 million (average daily turnover of $247.37 million), representing an increase of 11.09% when compared to the $1,113.39 million (average daily turnover of $278.35 million), recorded the week-ended October 5, 2018

▪A review of trading activity in the Spot FX market amongst banks for the week-ended October 12, 2018, revealed an increase of 15.11%, as a total turnover of $402.72 million (average daily turnover of $80.54 million) was recorded, against $349.84 million (average daily turnover of $87.46 million) reported the week-ended October 5, 2018.