New Telegraph

FMDQ reports N16.18trn turnover in April

Turnover in FIC markets for the month ended April 30, 2021 was N16.18 trillion, representing a month-on -month (MoM) and year-onyear (YoY) decrease of 17.24 per cent (N3.37 trillion) and 3.11 per cent (₦0.52 trillion) respectively. Foreign Exchange (FX) and Money Market transactions were the highest contributors to the FIC markets in April 2021, jointly accounting for 54.57 per cent of the total FIC markets turnover. Total FX market turnover in April 2021 was $12.44 billion (N5.11 trillion), representing a MoM increase of 0.73 per cent ($0.09 billion) from the turnover recorded in March 2021 ($12.35 billion).

FX Spot turnover increased MoM by 24.62 per cent ($0.97 billion) to $4.91 billion in April 2021, offsetting the 10.46 per cent ($0.88 billion) decrease in FX Derivatives turnover and accounting for the total increase in FX market turnover in April 2021. The MoM decrease in FX Derivatives turnover was jointly driven by the MoM decrease of 30.33 per cent ($1.55 billion) and 34.56 per cent ($0.47 billion) in FX Swaps and Other Derivatives turnover respectively, offsetting the 61.29 per cent ($0.57 billion) and 56.44 per cent ($0.57 billion) MoM increase in FX Futures and FX Forwards turnover respectively.

In the OTC FX Futures market, the near month contract (NGUS APR 28, 2021) with a total outstanding notional value (NV) of $0.75 billion matured and was settled, whilst a new long-term (60M ) contract, NGUS APR 29, 2026 was introduced at a Futures price of $/N613.33. The total NV of open OTC FX Futures contracts as at April 30, 2021 stood at $4.63 billion representing a further decrease of 9.04 per cent ($0.46 billion) from its value as at March 31, 2021 and continuing its downward trend since May 2020. The average Central Bank of Nigeria (CBN) Official Spot $/N exchange rate remained constant at $/N379.00 in April 2021.

Conversely, the naira depreciated against the U.S. dollar at the Investors’ and Exporters’ (I&E) FX Window, losing 0.12 per cent ($/ N0.51) to close at an average of $/N410.36 in April 2021 from $/ N409.85 recorded in March 2021, and trading within a range of $/ N405.00 and $/N438.00 in April. Similarly, the naira depreciated against the US dollar in the parallel market, losing 0.05% ($/ N0.25) to close at an average of $/N484.25 in April 2021 from $/ N484.00 recorded in March 2021. Consequently, the average spread between the exchange rates in the formal (I&E FX Window) and unregulated (parallel) FX markets reduced by $/N0.26 to $/N73.89 in April 2021, from $/ N74.15 recorded in March 2021. In the primary markets, average discount rates for the 91-day, 182-day and 364-day T.bills increased MoM by an average of 0.74 percentage points (ppts), to close at a range of 2.00 per cent – 9.38 per cent in April 2021 (See Chart 5), conversely, the average discount rates for CBN OMO7 bills for comparable tenors8 decreased MoM marginally by 0.01ppts to close at a range of 7.00 per cent – 10.07 per cent in April 2021. The coupon rates for the 10Y9, 15Y and 25Y FGN10 bond issuances in April 2021 increased by an average of 1.81ppts to close at a range of 12.25 per cent – 13.85 per cent.

Turnover for OMO bills decreased by 45.48 per cent (N2.72 trillion) to N3.26 trillion, contributing to the decrease in its trading intensity to 1.13 in April 2021 from 1.93 recorded in March 2021. Similarly, T.bills’ and CBN Special bills turnover decreased MoM by 11.56 per cent (N0.20 trillion) and 64.75 per cent (N0.90 trillion) to N1.53 trillion and N0.49 trillion respectively in April 2021.

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