T-bill, Fx, Repos Boost Market By 93.64%
Posted: 12/Feb/2018

The three segments, Treasury bills, foreign exchange market and the repos, buy back and unsecured placements contributed 93.64 per cent of total turnover in the FIC markets, the OTC market has revealed. Fr the month of January 2018 turnover in the FMDQ OTC amounted to ₦11.71trillion, reflecting a 1.28 r cent (₦0.15trn) decrease from the value recorded in December 2017.

Transaction turnover recorded in the Fixed Income and Currency (FIC) markets for the month of January 2018 amounted to ₦11.71trn; a 1.28% (₦0.15trn) decrease from the value recorded in December 2017, While the total volumes traded in the import and export Window stands at $31.46bn since its inception (April 21, 2017).

The market posted a year on (y/y) year increase in turnover by 28.17 per cent to ₦2.57trn. Meanwhile, liquidity in the economy is expected to be influenced by N90billion OMO maturity Thursday, 15 February, 2018. According to the transaction reports released by the FMD, activities in the Nigerian Treasury bills’ market accounted for 39.24 per cent against 35.25 per cent recorded in December 2017. Out of the total turnover, while foreign exchange (FX) market accounted for 37.50 per cent, against 33.63 per cent in December 2017.

In the same period, the money market (Repurchase Agreements (Repos/Buy-Backs) & Unsecured Placements/Takings) accounted for 16.90 per cent, against 24.31 per cent per cent in December 2017 of total market turnover.

The above three segments , Treasury bills, foreign exchange market and the repos, buy back and unsecured placements contributed 93.64 per cent of total turnover in the FIC markets.

The OTC report for the month of January 2018 showed that the value of transactions in the FX Market settled at $14.01bn in January 2018, representing an increase of 8.91 per cent at $1.15bn) when compared with the value recorded in December 2017, which stood at $12.86bn. Liquidity flows via the I&E FX Window equally increased as total volumes traded for the month settled at $5.25bn, a 36.87% ($1.41bn) increase from the previous month.

So far, the total volumes traded in the Window stands at $31.46bn since its inception (April 21, 2017). Exchange rates for the Naira traded relatively flat, as the Investors’ & Exporters’ (I&E) FX Window appreciated slightly to close the reporting month at $/₦360.00 from $/₦360.33 as at December 29, 2017, whilst also trading at a discount to the Parallel Market which depreciated slightly to close the month at $/₦364.00 from of $/₦363.00 as at December 29, 2017.             

By Bonny Amadi
Daily Times News

Category: Markets
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