Investors, Exporters Trade N21.70trn In Fx Market
Investors and exporters traded N21.70 trillion turnover at the secondary market of the FMDQ Exchange in Octobera 6.75 percent Month-on-Month (MoM) decline or N1.57 trillion and Year-on-Year (YoY) increase of 60.27 percent or N8.16 trillion from September 2023 and October 2022, respectively.
FMDQ in its October 2023 financial markets monthly report disclosed that the Central Bank of Nigeria (CBN) Bill, Money Market (MM), and FX transactions dominated secondary market activity, accounting for 80.69 percent of the total secondary market turnover in October 2023.
The report disclosed that the total spot market turnover for all products traded in the secondary market was N20.48 trillion in Octobera MoM decrease of 4.02 percent or N0.86 trillion from September 2023.
According to the report, the MoM decrease in total spot market turnover was jointly driven by the 38.24 percent or N3.04trillion and 11.89 percent or N0.49trillion decrease in MM and FX turnover, offsetting the 29.04 percent or N2.68trillion increase in FI turnover, respectively.
“The decline in MM turnover was jointly driven by a decrease in Repos/Buy-backs and unsecured placement/taking transactions, respectively. Conversely, the uptick in FI turnover was driven by a MoM increase across all FI products, excluding T.Bills and FGN Bonds which decreased in the review period,” the report disclosed.
FMDQ Exchange in its report stated that non-sovereign bonds worth N23.00 billion were listed on FMDQ Exchange in October 2023, representing an 80 percent or N92.00 million MoM decrease from September 2023 listings.
The report said that the non-sovereign bond listings emanated solely from a corporate issuer in the financial services sector.
a result, the total outstanding value for non-sovereign bonds increased marginally MoM by 0.35 percent or N7.72billion from N2,180.27billion in September 2023 to N2,187.99billion in the review month.
“The total value of CPs quoted on FMDQ Exchange in October 2023 was N36.51a MoM decrease of 75.03 percent or N109.71 billion from the value of CPs quoted in September 2023.
“Quoted CPs were issued by institutions from various sectors including financial services (5), manufacturing(5), agriculture(2), health & pharmaceuticals(1), and real estate(1).
“As a result, the total outstanding value for CPs increased MoM by 2.39 percent or N22.15 billion to N948.56bn in October 2023,” the report disclosed.