FMDQ Secondary Market Generated N21.7 Trillion In Sales In June, For the month of June 2023, the secondary market section of FMDQ Securities Exchange had a total turnover of N21.7 trillion.
The amount is an increase of 19.41% (or 3.53 trillion) over the turnover reported in May 2023 and June 2022, or 37.78% (or 5.96 trillion) month over month and 19.41% (or 3.53 trillion) year over year.
The exchange reports that in June 2023, the combined volume for the Spot and Derivatives Markets was 17.82 trillion and 3.92 trillion, respectively. The market turnover for spot foreign exchange increased by 22.48 percent ($1.52 billion) month over month in June 2023 to $7.73 billion (or $4.77 trillion). This is compared to the turnover of $6.21 billion in May 2023.
The exchange rate increased by 25.96% ($162.51) to settle at an average of $/625.9 in June 2023 from $/463.39 recorded in May 2023, moving within a range of $/464.67 – $/770.38. In addition, the naira sharply devalued against the dollar on the foreign exchange market.
Additionally, FMDQ reported that for the week ending August 4, 2023, the foreign exchange spot and futures markets’ combined turnover was $455.12 million, up 14.56 percent ($57.85 million) from the $397.27 million recorded for the week ending July 28.
The exchange outlined how the 14.71% ($58.27 million) increase in forex spot turnover offset the 33.07% ($0.42 million) reduction in forex derivatives turnover to account for the week-over-week (WoW) gain in overall turnover.
FMDQ reported that the WoW decline in forex derivatives turnover resulted from a 33.07% reduction ($0.42 million) in forex forwards turnover, along with a persistent lack of activity in both the exchange-traded forex futures and the naira-settled OTC forex futures markets.
According to the statement, the overall value of transactions in the foreign exchange spot market during the period was $454.27 million, an increase of $58.27 million (or 14.71%) over the value of transactions carried out for the week ending July 28, 2023 ($396 million).
It further stated that the active naira-settled OTC forex futures markets and exchange-traded currency futures saw no deals for the week ending August 4, 2023.
Additionally, during that time, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $//768.77, down from $//775.01 during the week ended July 28, 2023, signifying a 0.81 percent ($6.24) strengthening of the naira against the dollar.
