Commentary on the Foreign Exchange (FX) market with data for the week-ended June 28, 2019. The Small and Medium-scale Enterprises (SMEs) and the Retail (Invisibles) segment
?In the Investors’&Exporters’(I&E) FX Window, the total value of trades for the week-endedJune
?The Central Bank of Nigeria (CBN) intervened through its periodic supply of United States (US)
dollars in the FX market, offering a total of $100.00 million to the Secondary Market Intervention Sales (SMIS) Wholesale window on June 25, 2019.
The apex bank sold $55.00 million each to both 21, 2019, closed at $1.03 billion, representing an increase of 4.04% ($0.04 billion) when compared to the $0.99 billion reported in the previous week-ended June 14, 2019, bringing the year-to-date (YTD) value of trades at the window to $33.59 billion
?For the reporting week-ended June 28, 2019, the CBN official rate fell by ?0.05 to close at $/?306.90, indicating a 0.02% appreciation when compared to $/?306.95 recorded the previous week-ended June 21, 2019
?In the Bureau-de-Change (BDC) market, the exchange rate remained unchanged at $/?361.50
? Till for the week-ended June28, 2019,the Naira depreciated at theI&EFXWindow,losing ?0.25 to close at $/?360.74 when compared to $/?360.49 recorded the previous week, resulting in a spread of $/?0.76 between the BDC market rate and I&E FX Window rate
?Also, the spread between the BDC market rate and the CBN official exchange rate rose by ?0.05 to close at $/?54.60, indicating an increase of 0.09% from the $/?54.55 recorded in the previous week
? In the OTC FX Futures market, $488.59 million worth of OTC FX Futures contracts were traded in twenty (20) deals, compared to the total of $81.16 million traded in eleven (11) deals for the previous week-ended June 21, 2019
?The 36th OTC FX Futures contract, NGUS JUN 26 2019, with contract amount $529.10 million matured and settled on FMDQ, the Futures Exchange, on Wednesday, June 26, 2019.
The CBN introduced a new contract, NGUS JUN 24 2020 for $1.00 billion at $/?362.38, to replace the matured contract and refreshed its quotes on the existing contracts. These quotes are published daily on the FMDQ website and via the Exchange’s Twitter handle – @FMDQOTCExchange
Dealing Member-Client Spot FX Market Turnover Report
? For the week-ended June 21, 2019, trading activities in the Spot FX market between the DMBs and their clients stood at $1,484.26 million (average daily turnover of $296.85 million), representing an increase of 10.37% when compared to the $1,344.84 million (average daily turnover of $336.21 million), recorded the previous week-ended June 14, 2019
? A review of trading activities in the Spot FX market amongst banks for the week-ended June 21, 2019, revealed a decrease of 42.72%, as a total turnover of $300.74 million (average daily turnover of $60.15 million) was recorded, against $525.06 million (average daily turnover of $131.27 million) reported the week-ended June 14, 2019.