FX market turnover falls 43%, naira weakens further: FMDQ

The total turnover in the FX spot and derivatives markets fell by 42.81 percent this week to $538.30 million from $941.28 million last week, according to FMDQ Group.

“The week-on-week decrease in total turnover was driven by the 44.56 percent ($368.61 million) and 30.12 percent ($34.37 million) decreases in FX spot and FX derivatives turnovers, respectively,” it said on Saturday in its weekly report.

It said the decrease in FX derivatives turnover was jointly driven by the 64.82 percent ($8.61 million) and 25.55 percent ($25.76 million) decreases in FX forwards and FX futures turnovers, respectively.

In the FX spot market, the total value of transactions for the week-ended July 29, 2022, was $458.55 million, representing a decline of 44.56 percent ($368.62 million) compared to last week.

In the FX futures market, $75.07 million worth of FX futures contracts were traded in seven deals, representing a decrease of 25.55 percent ($25.76 million) when compared to the $100.83 million FX futures contracts traded in sixteen deals last week.

“The average Nigerian Autonomous Foreign Exchange Fixing rate was $/N425.45 on Friday, compared to the $/N423.26 at which it closed last week, representing a depreciation of the naira against the dollar by 0.52 percent, FMDQ said.

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