By Nse Anthony-Uko
(Sundiata Post) — Transactions in the fixed income and currency markets, FMDQ OTC Securities Exchange declined by 1.28 per cent to hit N11.71 trillion in January.
According to the FMDQ OTC Securities Exchange monthly review, transaction turnover in the Fixed Income and Currencies (FIC) markets for the month of January 2018 amounted to N11.71 trillion, a 1.28 per cent decrease from the value recorded in December, 2017.
Reviewing activities on the market showed that the Treasury Bills (T.bills) market accounted for 39.24 per cent of market turnover, while the Foreign Exchange (FX) market accounted for 37.50 per cent of the total turnover and the Money Market (Repurchase Agreements, Buy-Backs & Unsecured Placements/Takings) accounted for 16.90 per cent of market turnover.
The Exchange noted that these three segments combined contributed 93.64 per cent to the total turnover in the FIC markets.
A further analysis of the performance in January showed that transactions in the FX market settled at $14.01 billion in January, 2018, an increase of 8.91 per cent to when compared with the value recorded in December, 2017 of $12.86 billion.
In the month under review, the naira appreciated slightly at the Investors’ & Exporters’ (I&E) FX Window closing at a dollar to N360.00 from a dollar to N360.33 as at December 29, 2017. The total value traded at the I&E FX Window in January, 2018 settled at $5.25 billion, an increase of 36.87 per cent relative to the value recorded in December, while the total value traded at the I&E FX Window since inception on April 21, 2017 stands at $31.46 billion
Also, the turnover in the Fixed Income market for the month under review went up by 7.16 per cent to settle at N5.33 trillion, with transactions in the T.bills market accounting for 86.11 per cent of the overall Fixed Income market, an increase from the 84 per cent recorded in December, 2017
Outstanding T.bills at the end of the month stood at N11.47 trillion, an increase of 8.21 per cent month-on-month. FGN bonds outstanding value also increased by 0.96 per cent month-on-month to close at N7.64 trillion from N7.57trn in December, 2017.
The Exchange said it will focus on promoting the development of the markets within its purview through the roll out of innovative initiatives in 2018, with an even expanded scope to unlock capital through the markets for the development of the Nigerian economy, FMDQ shall continue to work with its stakeholders to make the Nigerian financial markets globally competitive, operationally excellent, liquid and diverse.