Increased FX turnover fails to lift naira, FMDQ data show
The naira weakened against the dollar this week despite the increase in the turnover in the foreign exchange market, data from FMDQ Group show.
The total turnover in the FX spot and derivatives markets rose to $1.03 billion this week from $776.39 million last week.
FMDQ said in its weekly report on Saturday that the increase in total turnover was jointly driven by the 13.56 percent ($101.05 million) and 486.80 percent ($151.25 million) increases in FX spot and FX derivatives turnover respectively.
It said the increase in FX derivatives turnover was majorly driven by the 1,046.04 percent ($155.86 million) increase in FX futures turnover which offset the 28.51 percent ($4.61 million) decrease in FX forwards turnover.
“In the FX spot market, the total value of transactions for the week-ended December 16, 2022, was $846.37million, representing an increase of 13.56 percent ($101.05 million) from the value of transactions executed in the week-ended December 9, 2022 ($101.05 million),” it said.
FMDQ said $170.76 million worth of FX futures contracts were traded in 45 deals, compared to the $14.90 million FX futures contracts traded in three deals last week.
“For the week-ended December 16, 2022, the average Nigerian Autonomous Foreign Exchange Fixing rate was $/N447.58 compared to $/N444.63, recorded in the week-ended December 9, 2022, representing a depreciation of the naira against the United States dollar by 0.66 percent ($/N2.95),” FMDQ added.
