Forex trading, T Bills, others hit N67.3trn in six months

Foreign exchange transactions, Treasury bills; Money Market, including; Repurchase Agreements, Buy-Backs and Unsecured Placements/Takings; FGN Bonds and Other Bonds traded for a period of six months have been put into a total value of N67.3 trillion in the first six month of 2017.

The latest FMDQ OTC market turnover’s report has showed that turnover on all products traded on the FMDQ secondary, excluding primary market auctions in Treasury Bills, Bonds and Foreign Exchange accounted for the new figure.

According to the FMDQ half year report, foreign exchange derivatives stood at N7.930 trillion ($25,365,000,000b) between January to June this year, while Treasury Bills accounted for N31.309tr ($100,348,000,000b).

Also, FGN Bonds’ Turnover from January to June 2017, stabilised at N5.353b ($17,169,000,000) but recorded N1.631b ($5m) on Other Bonds in the second quarter of this year.

The data, extracted from the report indicated that Eurobonds made during the quarter under review was N51.347b ($164m), while Repurchase Agreements/Buy-Backs steadied at N15.734 trillion ($50.468billion) during the period.

Although, Unsecured Placements/Takings responsible for the total sum of N671.796b ($2,150, 000,000), as Money Market Derivatives only accounted for a fraction of N19,590b ($63,000,000m) of the total market turnover of N67.373 tr or ($215.906b) during the first six month of 2017.

Meanwhile, our correspondent further findings showed that transaction turnover in the nation’s fixed income and currency markets increased by a total sum of N3.13tr in June alone, while compared to the value recorded in May.

Both markets in the month under review, recorded a new figure of N12.62tr, representing 34.56 per cent in June, year-on –year (y-o-y).

The FMDQ OTC monthly report, however, indicated that the treasury bills (T-bills) segment of the fixed income market continued its dominance the market in the month of June 2017 accounting for 43.22 per cent, against 40.73 per cent recorded in May while FGN2 bonds recorded 6.22 percent compare to 5.23 per cent in May of total turnover in June.

Turnover in the fixed income market generally, in the month under review, settled at N6.24tr, representing a 43.03 percent (N1.87trn) month-on-month increase. Transactions in the T-bills market accounted for 87.41% of the Fixed Income market, from 88.67 percent the previous month.

On the other hand, activities in the secured money market (Repos/Buy-Backs) settled at N3.51tr in June, 34.28 per cent (N0.89trn) more than the value recorded in May. On a year-on-year basis, turnover on repos/buy-backs recorded a 26.34 percent (N0.76trn) increase.

It is however, worth of notes that FMDQ, in its capacity as market organiser of the Nigerian OTC markets, receives trade data from its Dealing Members on a weekly basis, and in line with fulfilling its mandate to provide transparency to the market, publishes monthly turnover figures across all the products traded on the FMDQ platform.

The data, collated from the weekly trade data submissions by FMDQ Dealing Members, represents trades executed between Dealing Members, Dealing Members & Clients, and Dealing Members & the Central Bank of Nigeria (CBN).

Motolani Oseni