FMDQ market report

During the week-ended January 5, 2018, Central Bank of Nigeria (CBN) continued its supply of US Dollars in the FX market, offering $100.00mm at a marginal rate of $/₦332 via a Single Secondary Market Intervention Sale (SMIS) – Wholesale session held during the week-ending January 5, 2018.

The apex bank also maintained its intervention for Small and Medium-Scale Enterprises (SMEs) & for Retail Invisibles transactions by supplying $55.00mm each for both interventions

The CBN also offered a SMIS – Retail intervention for the clearance of matured FX obligations for the Raw Materials and Machineries, Agriculture, Airlines and Petroleum products sectors on January 5, 2018

In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades recorded for the week- ended December 29, 2017 stood at $564.32mm. This represents a decrease of 61.21% indicating a normalisation of value traded relative to the $1.45bn (an increase of 108.56%) recorded the previous week. This brings the total value traded at the Window since its inception to $26.21bn

For the reporting weekend January 5,2017,the CBN official rate declined by ₦0.05 to close at $/₦305.95, indicating a 0.02% appreciation when compared to $/₦306.00 at the end of the previous week-ended December 29, 2017

In the Bureau de Change (BDC) market, the exchange rate declined by ₦1.00 to close at $/₦363.00, indicating a 0.27% appreciation when compared to $/₦364.00 recorded at the end of the previous week-ended December 29, 2017

The Naira depreciated at the I&E FX Window, where rates opened the week at $/₦361.00, losing ₦0.08 to close the week at ₦361.08, resulting in a spread of $/₦1.92 between the I&E FX Window and BDC market rates

On the other hand, the spread between the BDC and the CBN official exchange rates dropped by $/₦0.95 to close at $/₦57.05, representing a 1.64% decrease from the spread of $/₦58.00 recorded in the week-ended December 29, 2017

The OTC FX Futures market recorded no trades within the reporting week, compared to the previous week’s total of $362.93mm traded in seven (7) deals

Dealing Member-Client Spot FX Market Turnover Report
For the week ended December 29,2017,trading activity in the Spot FX market between the banks and their clients stood at $586.42mm (average daily turnover of $195.47mm), representing a 66.15% decrease from the $1,732.48mm (average daily turnover of $346.50mm), recorded the previous week, December 22, 2017▪

A review of trading activity in the Spot FX market amongst banks for the reporting period also revealed a 39.62% decrease, as a total turnover of $147.59mm (average daily turnover of $49.20mm) was recorded against the $244.43mm (average daily turnover of $48.89mm) reported the previous week, December 22, 2017.