Naira ends lower as FX market turnover drops 21%: FMDQ

The naira weakened further against the dollar this week on the official market as the turnover for trades between banks and their clients dropped by over a fifth, according to FMDQ Group, a securities exchange.

It said the average Nigerian Autonomous Foreign Exchange Fixing rate for this week was N462.70 per dollar, compared to N462.42/$ last week, representing a depreciation of the naira against the dollar by 0.06 percent.

The total turnover in the FX spot and derivatives markets fell by 21.07 percent, or $101.17 million, to $378.89 million this week compared to last week.  

“The week-on-week (WoW) decrease in total turnover was solely driven by the 68.88 percent ($111.45 million) decrease in FX derivatives turnover, offsetting the 3.23 percent ($10.28 million) increase in FX spot turnover,” the FMDQ said in a report on Saturday.

It said the decrease in FX derivatives turnover was driven by the 72.57 percent decrease in FX futures turnover, which offset the 209.43 percent increase in FX forwards turnover.

The total value of transactions in the FX spot market rose by 3.23 percent, or $10.28 million, to $328.53 million.

In the FX futures market, $43.80 million worth of FX futures contracts were traded in 13 deals, representing a decrease of 72.57 percent when compared to the $159.69 million contracts traded in 15 deals last week.

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