FMDQ Securities Exchange has posted a turnover of N11.78 trillion in fixed income and currency (FIC) markets in May, 2020.
This is contained in a monthly FIC report obtained by the News Agency of Nigeria (NAN) from FMDQ on Wednesday.
The report showed that the turnover represented a decrease of 29.46 per cent, when compared with N16.70 trillion in April.
FMDQ said that the turnover recorded in the FIC markets in May 2020, was the lowest turnover recorded since January 2018 (N11.71trillion).
It stated that money market comprising repurchase agreements and unsecured placements transactions and open market operations bills drove the total FIX market turnover in May, accounting for 61.26 pe cent.
According to the report, money market transactions replaced foreign exchange (FX) as the highest contributor to FIC markets turnover in May during the review period.
It noted that FX market turnover in May 2020 was 7.62 billion dollars (N2.94 trillon), representing decrease of 32.92 per cent or 3.74 billion dollars from 11.36 billion dollars or N4.38 trillion posted in April.
An analysis of FX market turnover indicated a general decrease in FX market activity by trade type, with Member-Client trades accounting for 55.61 per cent ($2.08 billion) of the total MoM decrease in FX turnover.
However, FX Derivatives accounted for 89.30 per cent ($3.34 billion) of the total MoM decrease in FX turnover by product type in May 2020.
It is noteworthy to mention that the turnover for Member-CBN FX Spot trades increased by 100 or cent MoM from 0.16 billion dollars in April to 0.32 billion dollars in May.
In May, the Naira depreciated against the United States dollar at the Investors’ and Exporters’ FX Window by N1.18 to close at an average of N386.17.
Also, in the parallel market, the naira depreciated against the U.S dollar by N22.37 to close at an average of N450 during the review period.
Source: NAN
