Spot FX market turnover in November 2023 was $5.17 billion (N4.33 trillion), a 10.94% ($0.51 billion) increase from the turnover reported in October 2023 ($4.66 billion).
The Times reported that this was revealed in the FMDQ Markets Monthly Report for October.
According to the study, the Naira depreciated against the US Dollar in the FX Market, with the spot exchange rate (N/$) falling by 4.41% ($/N35.14) to close at an average of N832.57/$ in November 2023, down from N797.43/$ in October 2023.
It went on to say that exchange rate volatility dropped in November 2023, with the Naira trading in a range of N750.14/$ – N996.75/$, compared to N741.85/$ – N993.82/$ in October 2023.
According to the study, FI’s market turnover in November 2023 was N14.73 trillion, a 23.68% (N2.82 trillion) rise from the turnover in October 2023 (N11.91 trillion).
FMDQ noted that the MoM increase in FI market turnover was driven by 161.50% (N3.23 trillion), 21.76% (N0.47 trillion), 4.10% (N0.19 trillion), and 8.97% (N0.001 trillion) increase in turnover across T.Bills, FGN Bonds, CBN Special Bills, and Other Bonds, offsetting the MoM decline in OMO Bills and Unsecured Placement/Takings transactions, respectively.
“As a result, the trading intensity (TI) for T.Bills and FGN Bonds increased by 0.58 and 0.02 MoM, respectively, to 1.00 and 0.13.”
Total transaction in the Money Market category grew MoM by 18.94% (N0.93 trillion) to N5.84 trillion in November 2023, according to the report.
According to FMDQ, the MoM gain was driven exclusively by a 19.88% (N0.96 trillion) increase in Repos/Buy-backs, which offset a 37.50% (N0.03 trillion) fall in Unsecured Placement/Takings transactions.
“The average O/N rate and OPR rate (secured lending rate) increased MoM by 15.41ppts and 15.13ppts respectively, to close at an average of 19.91% and 19.00% in November 2023,” according to the report.
Total turnover in the FX derivatives market category in November 2023 was $3.55 billion (N2.98 trillion), a 129.03% ($2.00 billion) increase from October 2023 figures.
In November 2023, total spot market turnover for all products traded in the secondary market was N24.89 trillion, marking a MoM increase of 21.53% (N4.41 trillion) over October 2023 statistics.
Total spot market turnover increased by 18.31% (N0.67 trillion), 18.94% (N0.93 trillion), and 23.68% (N2.82 trillion) month on month.
The rise in MM turnover was exclusively due to an increase in Repos/Buy-backs, which more than offset the MoM reduction in Unsecured Placement/Takings transactions.
The increase in FI turnover, on the other hand, was driven by a MoM increase across all FI products, excluding OMO Bills, which declined throughout the review period.
In contrast, the uptick in FI turnover was driven by a MoM increase across all FI products, excluding OMO Bills which decreased in the review period.
