The foreign exchange (FX) trade turnover between Nigerian banks in the Spot, Forwards and Futures markets for the week-ended June 4, 2021, declined by 14.49 percent to $1,069.71 Million from $1,250.97 Million reported for the week-ended May 28, 2021, according to FMDQ. The week-on-week (WoW) decrease in turnover was driven by the 24.75% ($222.62 Million) decrease in the FX Spot turnover.
The FMDQ publishes Weekly Foreign Exchange Market analysis report every week. The report showed that Week-on-Week increase in FX Derivatives turnover was driven by the increase of 59.39 percent ($113.05 Million) in FX Futures turnover, resulting in an increase in FX Derivatives’ contribution to total FX market turnover, by 14.22 Percentage Points to 28.10 percent from 13.88 percent recorded in the previous week.
In the Investors’ & Exporters’ (I&E) FX Market, the total value of transactions for the week-ended June 4, 2021, was $676.80 Million, representing a decrease of 24.75 percent ($222.62 Million) from $899.42 Million traded in the week-ended May 28, 2021. For the week-ended June 4, 2021, the weekly average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/N410.74 compared to $/N410.91 recorded in the previous week-ended May 28, 2021, representing an appreciation of the Naira against the United States (US) Dollars by $/N0.17.
Naira fell to N502 per Dollar on Friday, the lowest since November 30, 2020 when it weakened to as low as N510/$ on the black market. The Naira depreciation was as a result of speculation as speculators took advantage of the Central Bank of Nigeria (CBN) recently adopted exchange rate to buy up and hoard Dollars.
After trading on Friday Naira lost 1.41 percent to the Dollar, which closed at N502 compared with the opening rate of N495 on Monday. Week-on-week, Naira appreciated by 0.43 percentage points to 1.41 percent from 1.85 percent closed the previous week on the black market. Naira has been on a steady depreciation since the week.