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HomeFMDQ Exchange Records N18.72trn Fixed Income, Currency Turnover in July

FMDQ Exchange Records N18.72trn Fixed Income, Currency Turnover in July

FMDQ Exchange said Turnover in the Fixed Income and Currency (“FIC”) markets for the month ended July29, 2020 on its platform was ₦18.72 trn,

This indicates a month-on-month (MoM)1increase of 13.66% (₦2.25trn) from the turnover recorded in June2020 (₦16.47trn) and a year-on-year (YoY2 ) increase of 14.43% (₦2.36trn) from the turnover recorded in July2019(₦16.36trn).

As at July29,2020, year-to-date (YTD3) turnover was c.₦136.00trn, representing a YoY increase of 0.30% (₦0.41trn) on the YTD turnover of ₦135.58trn recorded in July2019▪

OMO4 bills and Money Market transactions (Repurchase Agreements [“Repos”] & Unsecured Placements/Takings) remained the highest contributors to the FIC markets in July2020, jointly accounting for 60.16% of the total FIC market turnover.

Foreign Exchange (“FX”) Market Total FX market turnover in July2020 was $10.82bn (₦4.20trn), representing a MoM increase of 25.38% ($2.19bn) from the turnover recorded in June 2020 $8.63bn (₦3.34trn).

Analysis of FX market turnover indicates that FX Derivatives accounted for 70.32% ($1.54bn) of the total MoM increase in FX market turnover in July2020. In the OTC FX Futures market, the near month contract5 (NGUS JUL292020) with a total outstanding notional value of $1.37 bn matured and was settled, whilst a new long-term (60-month) contract, NGUS JUL 30 2025 was introduced at a rate of $/₦581.52.

The total notional value of open OTC FX Futures contracts as at July29, 2020 stood at c.$12.69bn, representing a 3.64% ($0.48bn) decrease on the value of open contracts as at June 30, 2020 (c.$13.17bn).

It marks a continuing downward trend in the value of open contracts since May 2020, while the total notional value of OTC FX Futures contracts traded since inception stood at $48.85bn as at July29, 2020.