FMDQ weekly report

Commentary on the Foreign Exchange (FX) market with data for the week ended November 22, 2019. November 15, 2019, selling ¥14.70 million and $341.75 million at both sessions respectively

▪In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week-ended.

▪ The Central Bank of Nigeria (CBN)I intervened through its periodic supply of United States( US) Dollars in the FX market, offering a total of $100.00 million via the Secondary Market Intervention Sales (SMIS) Wholesale Window on November 19, 2019.

The apex bank sold $55.00 million each to both the Small and Medium-scale Enterprises (SMEs) and the Retail (Invisibles) segments; and also released the results for its auction of Chinese Renminbi and US Dollar under the Bilateral Currency Swap Agreement (BCSA) and SMIS – Retail held on November 15, 2019 closed at $1.57 billion, representing an increase of 11.35% ($0.16 billion) when compared to the $1.41 billion reported in the previous week ended November 8, 2019, bringing the year-to-date (YTD) value of trades at the Window to $60.70 billion

▪ Forthereportingweek-ended November 22, 2019, the CBN official rate rose by ₦0.05 to close at $/₦306.95, indicating a 0.02% depreciation when compared to $/₦306.90 recorded the previous week-ended November 15, 2019

▪ In the Bureau-de-Change (BDC) market, the exchange rate also remained unchanged for the eighteenth consecutive week at $/₦360.00.

▪ Still, for the week ended November 22, 2019, the Naira depreciated at the I&E FX Window, losing ₦0.06 to close at $/₦362.64 when compared to $/₦362.58 recorded the previous week, resulting in a spread of $/₦2.64 between the BDC market rate and I&E FX Window rate

▪ Also, the spread between the BDC market rate and the CBN official exchange rate rose by 0.05 to close at $/₦53.05, indicating a decrease of 0.09% from the spread of $/₦53.10 recorded in the previous week

▪ In the OTC FX Futures market, $566.92 million worth of OTC FX Futures contracts were traded in thirteen (13) deals, compared to the total of $61.44 million traded in seven (7) deals for the week ended November 15, 2019

▪ Also, the 41st OTC FX Futures contract, NGUS NOV 27 2019, is set to mature and settle on FMDQ Exchange, the Futures Exchange, on Wednesday, November 27, 2019.

Dealing Member-Client Spot FX Market Turnover Report

For the weekended November15, 2019, trading activities in the Spot FX market between the DMBs and their clients stood at $2,025.76 million (average daily turnover of $506.44 million), representing an increase of 26.15% when compared to the $1,605.82 million (average daily turnover of $321.16 million), recorded the previous week-ended November 8, 2019

▪ A review of trading activities in the Spot FX market amongst banks for the week-ended
November 15, 2019, revealed a decrease of 14.29%, as a total turnover of $348.84 million(average daily turnover of $87.21 million) was recorded, against $407.02 million (average daily turnover of $81.40 million) reported the week-ended November 8, 2019.