FX forward contracts fall 100% as naira firms

There were no foreign exchange forward contracts this week as the naira was little changed against the dollar, data from FMDQ Securities Exchange shows.

FX forwards turnover plunged to zero from $13 million last week, while there was continued lack of activity in both the Exchange-Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards markets.

The average Nigerian Autonomous Foreign Exchange Fixing rate was $/₦1,554.07, compared to $/₦1,554.96 in the previous week.

The total turnover in the FX spot and derivatives markets fell to $1,224.90 million from $1,274.75 million.

The week-on-week decrease in total turnover was jointly driven by the 2.92% decrease in FX Spot transactions, which recorded a total value of $1,224.90million, and the 100% decrease in FX Derivatives transactions.

FMDQ said the decrease in FX Derivatives turnover was solely driven by FX Forwards turnover.