Trading turnover on new I&E FX window hits $1bn
A bureau de change operator counts U.S. currency notes
A turnover of $1.075bn was recorded on the recently introduced Investors’ & Exporters’ FX window for the weeks-ended April 28 – May 12, 2017 data from the FMDQ OTC Securities Exchange (FMDQ), show.
Still within the week, contracts worth $30.30mm traded in fourteen (14) deals in the Naira-settled OTC FX Futures market, as compared to the previous week’s total of $10.21mm traded in two (2) deals.
Also, the 11th OTC FX Futures contract, with notional amount of circa $253.00mm is set to mature and settle on FMDQ on Wednesday, May 24, 2017
For the week-ended May 12, 2017, trading activity in the Spot FX market between the banks and their clients stood at $824.22mm (average daily turnover of $164.84mm), representing a 46.50 percent increase from the $562.62mm (average daily turnover of $140.66mm), recorded in the previous week.
Activity in the Spot FX market amongst banks for the same trading week revealed a 11.81 percent increase, as a total turnover of $102.60mm (average daily turnover of $20.52mm) was recorded against the $91.76mm (average daily turnover of $22.94mm) reported the previous week.
The Central Bank of Nigeria (CBN) continued its supply of US Dollars in the FX markets, offering a total of $190.00mn through several interventions conducted during the week-ended May 19, 2017.
The apex bank maintained its marginal rate for the Secondary Market Intervention Sales (SMIS) – Wholesale Forwards intervention at $/₦320 and Small and Medium Enterprises (SMEs) and Invisibles at $/₦357.
In the Bureau de Change (BDC) market, the exchange rate fell by $/₦9.00 to close at $/₦380.00 for the week-ended May 19, 2017, representing a 2.31 percent decrease when compared to the $/₦389.00 rate recorded at the end of the previous week-ended May 12, 2017.
Similarly, the official exchange rate in the inter-bank market fell marginally by $/₦0.15 to close at $/₦305.45, indicating a 0.05 percent decrease when compared to $/₦305.60 reported at the end of the previous week-ended May 12, 2017.
Therefore, the spread between the BDC and inter-bank market exchange rates fell by $/₦8.85 to $/₦74.55, representing a 10.61 percent decrease from the spread of $/₦83.40 recorded for the previous week-ended May 12, 2017.
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