FMDQ weekly report

Commentary on the Foreign Exchange (FX) market with data for the week ended November 29, 2019. (Invisibles) segments.

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

▪The Central Bank of Nigeria(CBN)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 26, 2019.

The apex bank sold $55.00 million each to both the Small and Medium-scale Enterprises (SMEs) and the Retail November 22, 2019 closed at $1.16 billion, representing a decrease of 26.11% ($0.41billion) when compared to the $1.57 billion reported in the previous week ended November 15, 2019, bringing the year-to-date (YTD) value of trades at the Window to $61.86 billion.

▪ For the reporting week ended November 29, 2019, the CBN official rate rose by ₦0.05toclose at $/₦307.00, indicating a 0.02% depreciation when compared to $/₦306.95 recorded the previous week-ended November 22, 2019.

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

▪ Still, for the week ended November 29, 2019, the Naira depreciated at the I&E FX Window, losing ₦0.17 to close at $/₦362.81 when compared to $/₦362.64 recorded the previous week, resulting in a spread of $/₦2.81 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 fell by ₦0.05 to close at $/₦53.00, indicating a decrease of 0.09% from the spread of $/₦53.05 recorded in the previous week

▪ In the OTC FX Futures market, $545.32 million worth of OTC FX Futures contract was traded in thirty-seven (37) deals, compared to the total of $566.92 million traded in thirteen (13) deals for the week ended November 22, 2019

▪ Also, the 41st OTC FX Futures contract, NGUS NOV 27 2019, matured and settled on FMDQ Exchange, the Futures Exchange, on Wednesday, November 27, 2019. The quotes for all open contracts are published daily on the FMDQ Exchange website and via the Exchange’s Twitter handle – @FMDQNigeria

Dealing Member-Client Spot FX Market Turnover Report
▪ Forth week ended November 22, 2019,trading activities in the Spot FX market between the DMBs and their clients stood at $1,580.64 million (average daily turnover of $316.13 million), representing a decrease of 21.97% when compared to the $2,025.76 million (average daily Turn over of $506.44 million), recorded the previous week-ended November 15, 2019

▪ A review of trading activities in the Spot FX market amongst banks for the week ended November 22, 2019, revealed an increase of 56.13%, as a total turnover of $544.66 million (average daily turnover of $108.93 million) was recorded, against $348.84 million (average daily turnover of $87.21 million) reported the week-ended November 15, 2019.