FMDQ Turnover Jumps 13.66% to ₦18.72trn in July

FMDQ Turnover Jumps 13.66% to ₦18.72 trillion in July

FMDQ Securities Exchange has posted 13.66 % turnover growth in the Fixed Income and Currency (FIC) for the month of July.

The Exchange in its monthly FIC reported turnover of ₦18.72 trillion in July as against ₦16.47 trillion reported in June.

Breakdown of the report indicates that open market operations (OMO), money market transactions and unsecured placements remained the highest contributors in the month under review.FMDQ Turnover Jumps 13.66% to ₦18.72 trillion in July

Specifically, they accounted for 60.16 % of the total FIC market turnover compare to 55.44% recorded in June.

Meanwhile, total foreign exchange (FX) market turnover berthed at $10.82 billion or N4.20 trillion, indicating a month-on-month increase of 25.38% from $8.63 billion or N3.34 trillion in June.

Further analysis of FX market turnover indicates that FX Derivatives accounted for 70.32% ($1.54 billion) of the total month on month increase in FX market turnover.

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.

Meanwhile, 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 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.

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“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.

FMDQ Turnover Jumps 13.66% to ₦18.72 trillion in July