Get Guardian on Google
FMDQ FX Spot and Derivatives markets recorded a total turnover of $1,208.23 million for the week ended September 13, 2024.
The figure represents an increase of 12.2 per cent ($131.18 million) from $1,077.05 million reported for the week ended September 6, 2024.
According to the exchange, the week-on-week (WoW) increase in total turnover was solely driven by the 12.7 per cent ($136.48 million) increase in FX Spot turnover, which recorded a total value of $1,208.23 million, compared to $1,071.75 million recorded in the week ended September 6, 2024, offsetting the 100 per cent ($5.30 million) decrease in FX derivatives turnover.
[ad]
It pointed out that the WoW decrease in FX derivatives turnover was solely driven by the 100.00 per cent ($5.30 million) decrease in FX forwards turnover, coupled with the ongoing lack of activity in both the exchange-traded FX futures and cleared naira-settled non-deliverable forwards markets.
Also, for the week ended September 13, 2024, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) was $/N1,623.99, compared to $/N1,608.85 recorded in the week ended September 6, 2024.
Recall that FMDQ FX Spot and Derivatives markets turnover hit $1,077.05 million during the week ended September 6, 2024, representing an increase of 37.8 per cent ($295.59 million) from $781.46 million recorded for the week ended August 30, 2024.
According to FMDQ Securities Exchange, the week-on-week (WoW) increase in total turnover was jointly driven by the 37.4 per cent ($291.79 million) increase in FX Spot turnover, which recorded a total value of $1,071.75 million, compared to $779.96 million recorded in the week ended August 30, 2024, and the 253.3 per cent ($3.80 million) increase in FX Derivatives turnover.
The exchange stated that the WoW increase in FX derivatives turnover was solely driven by the 253.3 per cent ($3.80 million) increase in FX Forwards turnover, whilst there was a continued lack of activity in both the exchange-traded FX futures and cleared naira-settled non-deliverable forwards markets.
Also, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) was $/N1,608.85, compared to $/N1,600.71 recorded in the week ended August 30, 2024. Meanwhile, the domestic bond market witnessed robust activity last week, highlighted by the successful launch of the government’s inaugural dollar-denominated bond.
This five-year bond, issued by the Debt Management Office (DMO) to raise $500 million for the 2024 fiscal deficit, was met with strong demand, and oversubscribed by $400 million.
The bond sale is expected to provide a much-needed boost to foreign exchange inflows and help address short-term supply-demand imbalances in the market.
[ad]
