Foreign Market Dealers Quotation (FMDQ) Securities Exchange records $445.6m in five days
According to a recent report by the Foreign Market Dealers Quotation (FMDQ) Securities Exchange, total turnover in the foreign exchange (FX) spot and derivatives markets segment was $445.58 million for the week ending September 8, 2023. This result represents a $105.90 million reduction (19.2%) from the $551.48 million reported for the previous week, ending September 1, 2023.
The week-on-week (WoW) fall in overall turnover was principally driven by a 19.25% decrease in FX spot turnover of $106.01 million. During the same time period, however, FX futures turnover increased by 15.28% to $0.11 million. This increase in currency derivatives turnover was entirely related to a 15.28 percent increase in currency forwards turnover of $0.11 million.
In contrast, the Exchange-Traded FX Futures and Naira-Settled OTC derivatives markets were quiet this week, with no recorded activity. Moreover, during this reporting period, FMDQ Securities Exchange recorded no deals in the Exchange-Traded FX Futures and existing Naira-Settled OTC FX Futures markets.
In terms of exchange rates, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate for the week was $772.13, up from $772.07 in the week ending September 1, 2023, marking a 0.01% depreciation of the Naira against the dollar. Given this scenario, policymakers will need to take a balanced and proactive approach to increasing FX transactions while also encouraging growth and stability in the larger economy.
In contrast, the Exchange-Traded FX Futures and Naira-Settled OTC derivatives markets were quiet this week, with no recorded activity. Moreover, during this reporting period, FMDQ Securities Exchange recorded no deals in the Exchange-Traded FX Futures and existing Naira-Settled OTC FX Futures markets. In terms of exchange rates, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate for the week was $772.13, up from $772.07 in the week ending September 1, 2023, marking a 0.01% depreciation of the Naira against the dollar. Given this scenario, policymakers will need to take a balanced and proactive approach to increasing FX transactions while also encouraging growth and stability in the larger economy. SOURCE: CSEA Africa
