By Chinyere Joel-Nwokeoma
Lagos, Aug. 19, 2020 FMDQ Securities Exchange has posted 13.66 per cent turnover growth in the Fixed Income and Currency (FIC) for the month of July.
FMDQ in a monthly FIC report obtained by the News Agency of Nigeria (NAN) on Wednesday said a turnover of N18.72 trillion was recorded in July.
This, according to the report, was against a turnover of N16.47 trillion achieved in June.
Breakdown of the report indicates that open market operations (OMO), money market transactions and unsecured placements remained the highest contributors to the FIC markets in the month under review.
Specifically, it accounted for 60.16 per cent of the total FIC market turnover against 55.44 per cent posted in June.
The report stated that total foreign exchange (FX) market turnover stood at $10.82 billion or N4.20 trillion, indicating a month-on-month increase of 25.38 per cent against $8.63 billion or N3.34 trillion in June.
Further analysis of FX market turnover indicates that FX Derivatives accounted for 70.32 per cent ($1.54 billion) of the total MoM increase in FX market turnover achieved in July.
In the OTC FX Futures market, the near month contract (NGUS JUL 29 2020) with a total outstanding notional value of $1.37bn matured and was settled, whilst a new long-term (60-month) contract, NGUS JUL 30 2025 was introduced at a rate of $/₦581.52.
“On July 7, the Central Bank of Nigeria (CBN) Official Spot US$/N exchange rate closed at $/₦381, representing a decrease of $/N20 in the Official Spot FX rate compared to the closing rate of $/₦361 as at July 6, 2020.
“Further, this represents the first $/N FX rate devaluation by the CBN since March 20, 2020, when the Official Spot FX rate was adjusted to $/₦361.00 from $/₦307.
“Consequently, the CBN Official Spot FX rate closed at an average of $/₦377.19 in July 2020, representing a decrease of 4.48% ($/₦16.19) from $/₦361.00 recorded in June 2020.
“At the Investors’ and Exporters’ (“I&E”) FX Window, the Naira depreciated against the US Dollar, losing 0.28% ($/₦1.09) to close at an average of $/₦387.48 in July 2020 from $/₦386.39 recorded in June.
“Similarly, in the parallel market, the Naira depreciated against the US Dollar losing 3.38% ($/₦15.29) to close at an average of $/₦467.67 in July 2020 from $/₦452.38 recorded in June,” said the report.