Nigeria’s foreign exchange market, where the dollar is exchanged with the local currency especially in Spot, Forwards and Futures markets, recorded an increase of 38.39 percent in total turnover for the week-ended June 25, 2021.
Read Also: Naira closes week flat across markets as CBN injects $210m
Total turnover stood at $808.02 million at the end of the week from $583.88 million reported for the week ended June 18, 2021, according to a report by the FMDQ.
The week-on-week (WoW) increase in turnover was driven largely by the 25.47 percent ($124.59 million) increase in the FX Spot turnover.
The report stated that WoW increase in FX Derivatives turnover was driven by the increase of 519.30% ($94.46 million) increase FX Futures turnover, resulting in a 7.82 percentage points increase in FX Derivatives’ contribution to total FX market turnover from 16.22 percent recorded in the previous week to 24.04 percent.
In the Investors’ & Exporters’ (I&E) FX market, the total value of transactions for the week ended June 25, 2021, was $613.78 million, representing an increase of 25.47 percent ($124.59 million) from 489.19 million in the week ended June 18, 2021.
For the week-ended June 25, 2021, the weekly average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N410.85 compared to $/N410.33 recorded in the previous week ended June 18, 2021, representing a depreciation of the Naira against the United States (US) Dollar by $/N0.52.
In the parallel market, the Naira appreciated against the US Dollar by $/N2.25 to close the week-ended June 25, 2021, at an average rate of $/N494.00, representing a 0.45% appreciation when compared to $/N496.25 recorded in the previous week.
Consequently, the spread between the weekly average parallel market and NAFEX rate decreased WoW by 3.22% ($/N2.77) to $/N83.15 in the week-ended June 25, 2021, from $/N85.93 recorded in the previous week.
In the FX Futures market, $112.65 million worth of FX Futures contracts were traded in 11 deal, representing a WoW increase of 519.30 percent ($94.46 million) when compared to $18.19 million traded in seven deals recorded in the week-ended June 18, 2021.
Still, in the FX Futures market, the 60th FX Futures contract, NGUS JUN 30 2021, is set to mature and settle on FMDQ Exchange on Wednesday, June 30, 2021.
The foreign exchange market observed the five days trading session with Naira closing flat across markets helped by the $210 million injected by the Central Bank of Nigeria (CBN) within the week.
Naira closed steady at N411.67k per dollar, which was also the opening rate at the Investors and Exporters (I&E) forex window.
On Monday local currency lost 0.16 percent to close at N411.67k from N411.00k on Friday at the I&E window.
On Tuesday, naira gained 0.40 percent as the dollar was quoted at N410.00 against N411.67k quoted on Monday at the Nigerian Autonomous Foreign Exchange (NAFEX), data from the FMDQ said.
Naira on Wednesday weakened by 0.36 percent as the dollar closed at N411.50k compared to N410.00k closed on Tuesday at the same market.
On Thursday, Naira/dollar exchange rate depreciated marginally by 0.04 percent or N0.17k to close at N411.67k$ from N411.50k quoted on Wednesday. Naira closed steady on Friday at the official window.
The foreign exchange market daily turnover increased by 21.62 percent to $114.53 million at the end of the week on Friday from $94.17 million recorded at the opening trading day on Monday.
Week-on-week, the turnover declined by 34.94 percentage points from 56.56 percent last week to 21.62 percent this week.
A breakdown of the CBN’s intervention showed that USD100 million was allocated to Wholesale Secondary Market Intervention Sales (SMIS), USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisibles.
At the Bureau De Change (BDC) segment of the foreign exchange market, Naira weakened by 1.02 percent to close at N495 per dollar from the opening rate of N490/$ on Monday.
