FMDQ weekly report

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.