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FMDQ market report

FMDQ OTC Securities Exchange

Commentary on the foreign exchange (FX) market with data on the respective markets for the week-ending January 26, 2018.

▪ The Central Bank of Nigeria (CBN) continued its supply of US Dollars in the FX market, offering $100.00 million at a marginal rate of $/₦332.00 via a Single Secondary Market Intervention Sale (SMIS) – Wholesale session held during the week-ended January 26, 2018. The apex bank also maintained its intervention for Small and Medium-Scale Enterprises & Retail Invisibles transactions at $55.00 million each for both interventions

▪ In the Investors’ & Exporters’ (I&E) FX Window, the total value of trades recorded for the week- ended January 19, 2018 stood at $1.44 billion. This represents a decrease of 2.04% ($0.03mm) when compared to the $1.47bn traded in the previous week. This brings the total value traded at the Window since its inception (April 21, 2017) to $29.62bn

▪For the reporting week-ended January 26, 2018, the CBN official rate declined by ₦0.05 to close at $/₦305.65, indicating a 0.02% appreciation when compared to $/₦305.70 at the end of the previous week-ended January 19, 2018

▪ In the Bureau de Change (BDC) market, the exchange rate remained unchanged at $/₦364.50

▪ The Naira appreciated at the I&E FX Window for the reporting week-ended January 26, 2018, where rates opened the week at $/₦360.67, gaining ₦0.32 to close the week at ₦360.35, resulting in a spread of $/₦4.15 between the I&E FX Window and BDC market rates.

▪ On the other hand, the spread between the BDC and the CBN official exchange rates rose by $/₦0.05 to close at $/₦58.85, representing a 0.09% increase from the spread of $/₦58.80 recorded for the previous week-ended January 19, 2018

▪ In the OTC FX Futures market, the 19th OTC FX Futures contract, NGUS JAN 31 2018, with notional amount $321.60mm is expected to mature and settle on FMDQ on Wednesday, January 31, 2018

▪ Still within the reporting week, $119.33million worth of OTC FX Futures contracts were traded in 12 deals, compared to the previous week’s total of $56.30 million traded in four (4) deals

Dealing Member-Client Spot FX Market Turnover Report
▪ For the week-ended January 19, 2018, trading activity in the Spot FX market between the banks and their clients stood at $1,626.77 million (average daily turnover of $325.25 million), representing a 6.77% decrease from the $1,744.90 million (average daily turnover of $348.98 million), recorded the previous week-ended January 12, 2018

▪ A review of trading activity in the Spot FX market amongst banks for the reporting period revealed a 24.33% decrease, as a total turnover of $153.71 million (average daily turnover of $30.74 million) was recorded, against the $203.13 million (average daily turnover of $40.63 million) reported the previous week-ended January 12, 2018

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