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FMDQ weekly report

Commentary on the Foreign Exchange (FX) market with data for the week ended December 20, 2019. (Invisibles) segments

Commentary on the Foreign Exchange (FX) market with data for the week ended December 20, 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 UnitedStates (US) Dollars in the FX market, offering a total of $100.00 million via the Secondary Market Intervention Sales (SMIS) Wholesale Window on December 17, 2019. The apex bank sold $55.00 million each to both the Small and Medium-scale Enterprises (SMEs) and the Retail December 13, 2019, closed at $1.60 billion, representing an increase of 8.11% ($0.12 billion) when compared to the $1.48 billion reported in the previous week ended December 6, 2019, bringing the year-to-date (YTD) value of trades at the Window to $65.98 billion

▪ For the reporting week ended December 20, 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 December 13, 2019

▪ In the Bureau-de-Change (BDC) market, the exchange rate rose by ₦1.00 to close at $/₦362.50 representing a 0.28% depreciation when compared to $/₦361.50 recorded in the previous week ended December 13, 2019.

▪ Still, for the week ended December 20, 2019, the Naira depreciated at the I&E FX Window, losing ₦0.57 to close at $/₦364.06 when compared to $/₦363.49 recorded the previous week, resulting in a spread of $/₦ 1.56 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 ₦0.95 to close at $/₦55.55, indicating an increase of 1.74% from the spread of $/₦54.60 recorded in the previous week

▪ In the FX Futures market, $607.82 million worth of FX Futures contracts were traded in thirty-one (31) deals, compared to the total of $229.98 million traded in eighteen (18) deals for the week-ended December 13, 2019

▪ Also, the 42nd FX Futures contract, NGUS DEC 24 2019, is set to mature and settle on FMDQ Exchange, the Futures Exchange, on Tuesday, December 24, 2019

Dealing Member-Client Spot FX Market Turnover Report

▪ For the week ended December 13, 2019, trading activities in the Spot FX market between the DMBs and their clients stood at $1,894.02 million (average daily turnover of $378.80 million), representing a decrease of 2.63% when compared to the $1,945.13 million (average daily turnover of $389.03 million), recorded the previous week-ended December 6, 2019

▪ A review of trading activities in the Spot FX market amongst banks for the week ended December 13, 2019, revealed a decrease of 34.34%, as a total turnover of $233.14 million (average daily turnover of $46.63 million) was recorded, against $355.07 million (average daily turnover of $71.01 million) reported the week-ended December 6, 2019.