Forex market value hits $13.86bn in October- FMDQ
Total transactions in the foreign exchange market in October has settled at $13.86 billion, represented a decline of 1.23 per cent or $0.17bn from $14.04bn recorded in September this year, latest monthly Financial Market Dealers Quotations (FMDQ) OTC Securities Exchange report has revealed.
The FMDQ report for the month of October showed that the Naira appreciated slightly in the Investors’ & Exporters’ (I&E) Foreign Exchange Window closing at N359.72 against the Dollar from N359.76 it opened for trading.
The report stated that trading at a premium to the parallel market also appreciated in the month of October to N363.00 against the Dollar (from N364.00/Dollar at the beginning of the month).
It however, stated that the Central Bank of Nigeria’s (CBN) Official Spot rate experienced a slight depreciation, dropping N0.10 to close at N305.80/Dollar (from 305.70 /Dollar at the beginning of the month)
According to the report, “Total value traded in the I&E FX Window settled at $4.30bn for October, a decrease of 6.68 per cent ($0.31bn) relative to the value recorded in September ($4.61bn). Total value traded at the Window since inception stands at $17.86bn.
“Inter-Member trades recorded $0.91billion in the month of October, a 17.28 per cent increase relative to the trades recorded in September, and a 63.36% increase YoY.
“Member Client trades stood at $8.94bn, decreasing by two per cent or $0.18bn from the previous month and increasing by 162.36per cent ($5.53bn) YoY
“Member-CBN trades stood at $4.01billion in October ($4.13bn in September), representing a decrease of 3.02per cent ($0.12bn) MoM and an increase of 809.81per cent or $3.57bn YoY”
The report added further that transaction turnover in the Fixed Income and Currency markets for the month of October amounted to N12.18trn, an increase of 7.39 per cent or N0.84trn increase from the value recorded in September, and a 47.19per cent (N3.90trn) increase YoY.
“The Treasury Bills (T-bills) market accounted for 37.20 per cent (38.45per cent in September) while FGN2 bonds recorded 6.51per cent (9.09per cent in September) of total turnover in October
“Activities in the Foreign Exchange market accounted for 36.92per cent (36.49per cent in September) while Money Market (Repurchase Agreements [Repos]/Buy-Backs & Unsecured Placements/Takings) accounted for 19.27per cent (15.92per cent in September) of total turnover for the reporting period,” the report explained.
On Market Surveillance, the report by FMDQ OTC said, “The number of executed trades captured on the E-Bond trading system for the month of October amounted to 14,687 as against 18,535 recorded in September
“Executed T.bills and FGN bonds trades decreased by 22.46 per cent and 13.77per cent, respectively when compared to the previous month.”
Motolani Oseni
