FX Spot, Forwards, Futures Markets Record $1.252bn Turnover

The foreign exchange (FX) Spot, Forwards and Futures markets on the FMDQ Securities Exchange recorded a total turnover of $1,250.97 million for the week ended May 28, 2021.

This represented an increase of 0.72 per cent ($8.97 million) from the $1,242.00 million reported the previous week.

The week-on-week increase in turnover, according to the exchange was driven by the 57.35 per cent ($128.13 million) increase in FX Derivatives turnover.

According to analysis by FMDQ, the increase in FX Derivatives turnover was driven by the increase of 299.8 per cent ($142.74 million) in FX Futures turnover, resulting in an increase in FX Derivatives’ contribution to total FX market turnover, by 14.22 percentage points to 28.1 per cent from 13.88 per cent recorded in the previous week.

On the Investors’ & Exporters’ (I&E) FX window, the total value of trade was $899.42 million, representing a decrease of 11.7 per cent ($119.17 million) from $1,018.59 million traded in the week-ended May 21, 2021.

A further analysis of the turnover on the FMDQ platform showed that the weekly average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated, losing $/N0.07 to close at $/N410.91, compared to $/N410.84 recorded in the previous.

However, on the Bureau-de-Change (BDC) market, the naira fell against the United State (US) dollars by $/N7 to close the week at $/N490, representing a 1.45 per cent depreciation when compared to $/N483.00 recorded in the previous week, resulting in a spread of $/N79.09 between the BDC rate and the weekly average NAFEX rate

In the FX Futures market, $190.35 million worth of FX Futures contracts were traded in 22 deals, representing an increase of 299.81 per cent ($142.74 million) when compared to $47.61 million traded in five deals the previous week.

Also in the FX Futures market, the 59th FX Futures contract, NG/US MAY 26 2021, matured and settled on FMDQ Exchange on Wednesday, May 26, 2021.