Spot foreign exchange (FX) market turnover in March 2024 stood at $12.61 billion (N19.29 trillion), representing a month-on-month (MoM) increase of 47.66% ($4.07 billion) from what was recorded in February 2024 ($8.54 billion).
This was contained in the FMDQ Markets Monthly Report for March seen by Naijaonpoint
The report noted that in the FX market, the US Dollar marginally depreciated against the Naira, with the spot exchange rate ($/N) decreasing by 0.06% ($/N0.97) to close at an average of $/N1,524.04 in March 2024 from $/N1,525.01 recorded in Feb. 2024.
The report said exchange rate volatility increased in March 2024 as the Naira traded within an exchange rate range of $/N1,300.43 – $/N1,627.40 compared to $/N1,418.78 – $/N1,665.50 recorded in February 2024.
According to the report, fixed income(FI) market turnover in March 2024 stood at N12.04 trillion, representing a MoM increase of 13.22% (N1.42 trillion) from what was recorded in February 2024 (N10.71 trillion).
FMDQ noted that the MoM uptick in the FI market turnover was driven by the 33.36% (N1.40 trillion), 45.45% (N0.86 trillion), and 17.76% (N0.15 trillion) increase in turnover across treasury bills, FGN bonds, and special bills, offsetting the 28.96% (N1.06 trillion) and 28.52% (N0.02 trillion) decline in open market operations (OMO) bill and other bonds transactions.
According to the report, total turnover in the money market (MM) segment increased MoM by 18.77% (N1.88 trillion) to N11.87 trillion in March 2024. The MoM increase was solely driven by the 18.85% (N1.88 trillion) increase in Repos/Buy-backs, offsetting the 31.89% (N0.01 trillion) decrease in unsecured placement/takings transactions, respectively.
Total turnover in the FX derivatives market segment in March 2024 was $3.70 billion (₦5.66 trillion), representing a MoM decrease of 18.98% ($0.87 billion) from the February 2024 figures.
The Exchange said that the MoM decrease in the FX derivatives turnover was solely driven by the 28.52% ($1.11bn) decline in FX swaps transactions, offsetting the 36.47% ($0.24 billion) increase in FX forwards turnover and lack of activity in the FX futures market.
In the cleared Naira-settled (USD/NGN) non-deliverable forwards market, the near month contract (NGUS MAR 27, 2024) expired and opened positions with a total notional value (NV) of $0.19bn were settled.
However, there was no new far month (60M) contract introduced in the cleared Naira-settled non-deliverable forwards market in the review period, continuing the trend since August, 2023.
Consequently, the TTM of the farthest open contract is 53 months (i.e., NGUS AUG 30, 2028 contracts).
Total spot market turnover for all products traded in the secondary market in March 2024 was N43.20 trillion, representing a MoM increase of 29.05% (N9.73 trillion) from February 2024 figures.
The MoM increase in total spot market turnover was jointly driven by an increase in turnover across all spot market product categories, with contributions by FX, MM and FI transactions increasing MoM by 51.01% (N6.52 trillion), 18.77% (N1.88 trillion) and 12.45% (N1.33 trillion), respectively.
The uptick in MM turnover was solely driven by the MoM increase in Repos/Buy-backs, offsetting the MoM decrease in Unsecured Placement/Takings transactions.
Similarly, the surge in FI turnover was jointly driven by a MoM increase across all FI products excluding OMO Bills and other bonds which declined in the review period.
Similarly, the surge in FI turnover was jointly driven by a MoM increase across all FI products excluding OMO Bills and other bonds which declined in the review period.