Turnover at Nigeria’s fixed income, currency market grosses N19.2trn
TURNOVER IN THE FIXED INCOME and currency (FIC) markets for the month ended September 30, 2019 grossed N19.20 trillion, data from the Financial Market Dealers Quote (FMDQ) has shown.
The turnover at the fixed income and currency markets represents a 17.28 percent or N4.01 trillion month-on-month (m-om) decrease on the turnover recorded in August 2019 which stood at 23.21 trillion. It was, however, a 15.32 percent or N2.55 trillion year-on-year (y-o-y) increase from N16.65 trillion recorded in June 2018.
A breakdown of the figure shows that the treasury bills (T-bills) and foreign exchange (FX) segments remained the major contributor to turnover in the OTC market.
T-bills and FX products jointly accounted for 78.42 percent of the total turnover in the FIC market in September 2019, representing a marginal decrease of 0.91 percentage points from 79.33 percent recorded in August.
Total FX market turnover in September 2019 was $18.12 billion (N6.56trillion at exchange rate of N360.74 to one dollar. The turnover represents a 29.47 percent or ($7.57 billion) m-o-m decrease.
Analysis of FX market turnover by trade type indicates month-on-month decrease across all categories, with Member-CBN trades recording the highest percentage month-on-month decrease at 47.61 percent of $3.32 billion, while Member-Client trades recorded the highest month-onmonth decrease in dollar terms, at $4.12 billion.
Further, analysis by product type indicates that the month-on-month decrease in FX turnover was mainly driven by a 21.20 percent or $3.04 billion and 39.90 percent or $4.53 billion monthon-month decrease in FX Spot and FX Derivatives turnover respectively.
So far, the total value of over-the-counter (OTC) FX futures contracts offered and settled on the FMDQ since the introduction of the product to review period is $19.58 billion, with a total of $10.24 billion in open contracts As at September 2019, the Central Bank of Nigeria official spot rates of the naira against the dollar remained constant at N307 per dollar. Similarly at the parallel market, the naira remained constant at N360 to the dollar, while the average exchange rate at the I &E FX window appreciated by N0.70 to close at N362.23 per dollar.
Total FX market turnover in September 2019 was $18.12 billion (N6.56trn), representing a 29.47 percent or $7.57 billion month-onmonth decrease from August 2019.
Analysis of FX market turnover by trade type indicates month-on-month decrease across all categories, with Member-CBN trades recording the highest percentage month-on-month decrease at 47.61 percent ($3.32bn), while MemberClient trades recorded the highest month-on-month decrease in dollar terms, at $4.12 billion (26.77%)
Further, analysis by product type indicates that the month-on-month decrease in FX turnover was mainly driven by a 21.20 percent or $3.04 billion and 39.90 percent $4.53 billion month-on-month decrease in FX Spot and FX Derivatives turnover respectively