Naira closes weaker despite increased FX market turnover: FMDQ

The naira closed weaker against the dollar this week at the Investors and Exporters window despite the increase in the foreign exchange turnover.

The total turnover in the FX spot and derivatives markets rose by 15.16 percent this week to $619.88 million, according to FMDQ Group.

“The week-on-week increase in total turnover was driven by the 13.03 percent ($59.75 million) and 27.37 percent ($21.83 million) increases in FX spot and FX derivatives turnovers, respectively,” it said in its weekly report on Saturday.

The increase in FX derivatives turnover was jointly driven by the 40.90 percent ($1.91 million) and 26.55 percent ($19.93 million) increases in FX forwards and futures turnovers, respectively.

In the FX Spot market, the total value of transactions for the week-ended August 5, 2022, was $518.30 million, representing an increase of 13.03% ($59.75 million) from the value of transactions executed in the week-ended July 29, 2022 ($458.55 million)

In the FX futures market, $95.00 million worth of FX futures contracts were traded in nine deals, representing an increase of 26.55 percent when compared to the $75.07 million contracts traded in seven deals recorded last week.

“For the week ended August 5, 2022, the average Nigerian Autonomous Foreign Exchange Fixing rate was $/N426.41, compared to $/N425.45 recorded in the week ended July 29, 2022, representing a depreciation of the naira against the United States dollar by 0.23 percent ($/N0.96),” FMDQ said.

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