FMDQ Securities Exchange reported a total turnover in its foreign exchange (FX) spot and derivatives markets sector of $445.58 million.

FMDQ FX Market Turnover Reaches $445.6m In Five Days

The amount is down $105 million (19.2%) from the $551.48 million recorded for the week ending September 1, 2023. 

The exchange reports that despite a 15.28 percent ($0.11 million) gain in FX derivatives turnover, the week-over-week (WoW) decline in overall turnover was driven by a decline of 19.25 percent ($106.01 million) in FX spot turnover.

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While there was a persistent dearth of activity in both the Exchange Traded FX Futures and Naira-Settled OTC FX Futures markets, the WoW increase in currency derivatives turnover was completely driven by the 15.28% ($0.11 million) increase in currency forwards turnover.

Additionally, the overall value of trades made in the FX Spot market for the week ending September 8, 2023, was $444.75 million, a 19.25% ($106.01 million) decline from the value of trades made in the week ending September 1, 2023 ($550.76 million).

The exchange reported that during the week ending September 8, 2023, there were no trades made in the Exchange-Traded FX Futures and existing Naira-Settled OTC FX Futures markets.

The average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/772.13 for the week ending September 8, 2023, compared to $/772.07 for the week ending September 1, 2023, reflecting a 0.01 percent ($0.06) depreciation of the Naira against the dollar.

On the bond market, there was a discernible trend toward selling interest in the FGN Bonds market for both mid- and long-term maturities. Analysts said that the Cash Reserve Ratio (CRR) debit, which cleaned away excess system liquidity, and the NTB auction settlement provided reinforcement for the uptick in selling activity. 

The benchmark yield on average increased by 12 basis points, resulting in a closing rate of 14.31% as compared to the previous week.