FMDQ weekly report

Commentary on the Foreign Exchange (FX) market with data for the week-ended November 23, 2018.

▪The Central Bank of Nigeria(CBN)intervened through its Periodic inject on of United States(US) Dollars in the FX market, supplying a total of $210.00mm to the FX market via the Secondary Market Intervention Sales (SMIS) held on November 21, 2018.

The apex bank offered the sum of $100.00 million to the Wholesale Segment and sold $55.00 million each to both the Small and Medium scale Enterprises (SMEs) and Retail (Invisibles) transactions.

Furthermore, the CBN 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 16, 2018, Selling ¥62.18 million and $318.03 million at both sessions respectively

▪ In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades for the week ended November 16, 2018 was $0.69 billion, representing a 5.48% ($0.04 billion) decrease on the $0.73 billion reported for the previous week, bringing the year-to-date (YTD) value of trades at the window to $52.08 billion

▪ For the reporting week-ended November 23, 2018, the CBN official rate rose by ₦0.05 to close at $/₦306.75, indicating a 0.02% depreciation when compared to $/₦306.70 recorded the previous week-ended November 16, 2018

▪ In the Bureau de Change (BDC) market, the exchange rate remained unchanged between the comparative weeks, to close the reporting week at $/₦364.50

▪The spread between the BDC market rate and the CBN official exchange rate fell by ₦0.05 to close at $/₦57.75, indicating a 0.09% decrease from the $/₦57.80 recorded in the previous week

▪ In the FX Futures market, $24.60 million worth of OTC FX Futures contracts were traded in seven (7) deals, compared to the total for the previous week-ended November 16, 2018 of $103.38 million traded in eleven (11) deals

▪ Still in the OTC FX Futures market, the 29th Futures contract, NGUS NOV 28 2018, with contract amount $886.79 will mature and settle on FMDQ on Wednesday, November 28, 2018

Dealing Member-Client Spot FX Market Turnover Report

▪ For the week-ended November 16, 2018, trading activities in the Spot FX market between the DMBs and their clients stood at $895.43million (average daily turnover of $179.09 million), representing a decrease of 12.33% when compared to the $1,021.32 million (average daily turnover of $204.26 million), recorded the week-ended November 9, 2018

▪A review of trading activities in the Spot FX market amongst banks for the week-ended November 16, 2018, revealed an increase of 30.69%, as a total turnover of $323.60 million (average daily turnover of $64.72 million) was recorded, against $247.60 million (average daily turnover of $49.52 million) reported the week-ended November 9, 2018