Goddy Egene
Transactions in the FX Spot, Forwards and Futures markets on the FMDQ Securities Exchange witnessed further decrease, declining by 35.62 per cent to $688.72 million from $1.069 billion two weeks ago.
The decline in turnover was driven largely by the 20.55 per cent ($139.06 million) decrease in the FX Spot turnover from $676.80 to $537.74 million
The drop in FX Derivatives turnover was driven by the sharp decline of 81.11 ($246.09 million) in FX Futures turnover, resulting in a 14.81 percentage points reduction in FX Derivatives’ contribution to total FX market turnover from 36.73 per cent recorded in the previous week to 21.92 per cent
In the Investors’ & Exporters’ (I&E) FX market, the total value of transactions for the week, was $537.74 million, representing a decrease of 20.55 per cent ($139.06 million) from $676.80 million traded the previous week.
The weekly average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N410.25 compared to $/N410.74 recorded in the previous week, representing an appreciation of the naira against the United States (US) Dollar by $/N0.49
But in the Bureau-de-Change (BDC) market, the naira depreciated against the dollar by $/N3.80 to close at an average rate of $/N498.80, representing a 0.77 per cent depreciation when compared to $/₦495.00 recorded in the previous week. Consequently, the spread between the weekly average BDC rate and NAFEX rate increased by 5.10 per cent ($/N4.29) to $/N88.55 last week, from $/N84.26 recorded in the previous week.
In the FX Futures market, $57.31 million worth of FX Futures contracts were traded in nine deals, representing a decrease of 81.11 per cent ($246.09 million) when compared to $303.40 million traded in four deals recorded two weeks ago.
