FMDQ Securities Exchange’s total turnover in the Foreign Exchange (forex) Spot and Derivatives markets for the week ended September 29, 2023, was $472.49 million.
The figure represents a decrease of 26.52 per cent ($170.57 million) from $643.06 million reported for the week ended September 22, 2023.
According to the exchange, the week-on-week (WoW) decrease in total turnover was jointly driven by the 26.38 per cent ($167.56 million) and 37.96 per cent ($3.01 million) decreases in Forex Spot and FX Derivatives turnover, respectively.
The exchange said the WoW decrease in Forex derivatives turnover was solely driven by the 37.96 per cent ($3.01 million) decrease in Forex Forwards turnover, whilst there was no activity in both Exchange-Traded Forex Futures and Naira-Settled OTC FX Futures markets.
In the Forex Spot market, the total value of transactions for the week ended September 29, 2023, was $467.57 million, representing a decrease of 26.38 per cent ($167.56 million) from the value of transactions executed in the week ended September 22, 2023 ($635.13 million)
It added that there were no trades executed in the Exchange-Traded FX Futures & extant Naira-Settled OTC Forex Futures markets for the week ended September 29, 2023
For the week ended September 29, 2023, the average Nigerian Autonomous Foreign Exchange
Fixing (NAFEX) rate was $/₦774.01, compared to $/₦771.14 recorded in the week-ended
September 22, 2023, representing a depreciation of the Naira against the dollar by 0.33 per cent ($/₦2.54).
Meanwhile, proceedings in the FGN bonds secondary market traded the week mainly on a calm note but turned bullish at the end of the week as the average yield contracted by 3bps w/w to 14.4.per cent.
Across the benchmark curve, the average yield contracted at the short (-19bps) and long (-2bps) ends following buying interest in the MAR-2024 (-86bps) and APR-2037 (-9bps) bonds, respectively. Conversely, the average yield expanded at the mid (+7bps) segment as market participants took profits off the APR-2032 (+8bps) bond.
Analysts at Codros Securities said: “Over the medium term, we expect yields in the FGN bond secondary market to remain elevated, driven by the sustained imbalance in the demand and supply dynamics.
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