The total FX market turnover on the FMDQ Exchange for the month of July 2021 rose to N5.14 trillion ($12.5 billion), a month-on-month (MoM) 23.5 per cent increase from the turnover ($10.12 billion) recorded in June 2021.
According to data obtained from the FMDQ’s website, the MoM increase in total FX market turnover was jointly driven by the 29.23 per cent ($1.44 billion) and 18.20 per cent ($0.94 billion) MoM increase in FX Spot and FX Derivatives turnover respectively in July 2021.
The data explained that the MoM increase in FX Derivatives turnover was driven by MoM increase in turnover for FX Swaps, FX Forwards and Other Derivatives by 31.03 per cent ($0.61billion), 19.24 per cent ($0.30 billion) and 57.65 per cent ($0.42 billion) respectively.
However, FX Futures decreased by 40.72 per cent ($0.38 billion), resulting in the lower MoM increase in FX Derivatives turnover relative to the MoM increase in FX Spot turnover. Consequently, the contribution mix of FX Spot and FX Derivatives to total FX market turnover changed to 50.95 per cent and 49.05 per cent respectively.
Meanwhile, turnover in the Fixed Income and Currencies (FIC) markets for the month ended July 2021 stood at N16.97 trillion, representing a 10.84 per cent (N1.66 trillion) MoM increase and a 9.35 per cent (N1.75 trillion) year-on-year (YoY) decrease from June 2021 and July 2020 turnover figures, respectively.
Foreign exchange (FX) and money market transactions were the highest contributors to the FIC markets’ turnover in July 2021, jointly accounting for 64.87 per cent of the total turnover.
In the OTC FX Futures market, the near month contract (NGUS JUL 28, 2021) with a total outstanding notional value (NV) of $0.24 billion matured and was settled, whilst a new long-term (60M ) contract, NGUSJUL 29, 2026 was introduced at a Futures price of $/N614.32. The total NV of open OTC FX Futures contracts as at July 30, 2021 stood at circa $4.22 billion representing a MoM decrease of 0.71 per cent ($0.03 billion) from its value as at June 30, 2021.