Naira extends fall against dollar as FX turnover dips 21%

The naira weakened further against the dollar as the turnover at the foreign exchange market fell by 21 percent this week, according to FMDQ Group.

FMDQ said in its weekly report that the total turnover in the FX spot and derivatives markets was $566.74 million this week, representing a decrease of 21.17 percent from $718.97 million last week.

“The week-on-week decrease in total turnover was jointly driven by the 9.73 percent ($39.04 million) and 35.61 percent ($113.19 million) decreases in FX spot and FX derivatives turnovers respectively,” it said.

It said the increase in FX derivatives turnover was jointly driven by the 97.47 percent ($23.51 million) and 30.53 percent ($89.68 million) decreases in FX forwards and FX futures turnovers respectively.

The report said the total value of transactions in the FX spot market was $362.10million, representing a decrease of 9.73 percent from the value of transactions executed last week.

It said in the FX futures market, $204.03 million worth of FX futures contracts were traded in 24 deals, representing a decrease of 30.53 percent when compared to the $293.71 million FX futures contracts traded in 18 deals last week.

“For the week-ended October 28, 2022, the average Nigerian Autonomous Foreign Exchange Fixing rate was $/N441.63 compared to $/N440.76, recorded in the week-ended October 21, 2022, representing a depreciation of the Naira against the United States dollar by 0.20 percent ($/N0.87),” FMDQ said.

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