FMDQ market report

Commentary on the Foreign Exchange (FX) market with data for the week-ended December 14, 2018.

▪ The Central Bank of Nigeria (CBN) intervened through its periodic injection of United States (US) Dollars in the FX market, offering a total of $210.00 million to the FX market via the Secondary Market Intervention Sales (SMIS) held on December 11, 2018.

The apex bank offered the sum of $100.00 million to the Wholesale segment and sold $55.00 million each to both the Small and Medium-scale Enterprises (SMEs) and Retail (Invisibles) transactions

▪ In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week ended December 7, 2018 was $1.26 billion, representing a 21.74% ($0.35 billion) increase on the $1.61 billion reported in the previous week ending November 30, 2018, bringing the year-to-date (YTD) value of trades at the window to $56.06 billion

▪ For the reporting week-ended December 14, 2018, the CBN official rate rose by ₦0.05 to close at $/₦306.90, indicating a 0.02% depreciation when compared to $/₦306.85 recorded the previous week-ended December 7, 2018

▪ In the Bureau de Change (BDC) market, the exchange rate fell by ₦1.00 to close at $/₦365.00, indicating a 0.27% appreciation when compared to $/₦366.00 recorded the previous week -ended December 7, 2018

▪ For the week-ended December 14, 2018, the Naira appreciated at the I&E FX Window, gaining ₦0.10 to close at $/₦365.23 when compared to $/₦365.33 recorded the previous week, resulting in a spread of $/₦0.23 between the BDC market rate and I&E FX Window rate

▪The spread between the BDC market rate and the CBN official exchange rate fell by ₦1.05 to close at $/₦58.10, indicating a 1.78% decrease from the $/₦59.15 recorded in the previous week

▪ In the FX Futures market, $165.47 million worth of OTC FX Futures contracts were traded in twenty-five (25) deals, compared to the total for the previous week-ended December 7, 2018 of $203.41 million traded in eighteen (18) deals

Dealing Member-Client Spot FX Market Turnover Report

For the week ended December7,2018, trading activities in the SpotFX market between the DMBs and their clients stood at $1,509.65 million (average daily turnover of $301.93 million), representing a decrease of 16.71% when compared to the $1,812.46 million (average daily turnover of $362.49 million), recorded the week-ended November 30, 2018

▪A review of trading activities in the Spot FX market amongst banks for the week-ended December

7, 2018, revealed an increase of 92.61%, as a total turnover of $522.95 million (average daily turnover of $104.59 million) was recorded, against $271.51 million (average daily turnover of $54.30 million) reported the week-ended November 30, 2018.