FX spot, derivatives markets experience significant surge with $683.97m turnover
The Foreign Exchange (FX) Spot and Derivatives markets experienced a significant increase in turnover for the week ending October 13, 2023. The total turnover reached $683.97 million, which represents a 109.52 percent increase compared to the previous week’s turnover of $326.44 million.
The exchange reported that this week-on-week (WoW) increase in turnover was driven by both the FX Spot and FX Derivatives markets. FX Spot turnover increased by 109.8 percent ($357.47 million), while FX Derivatives turnover saw a 6.06 percent ($0.06 million) increase.
This surge in turnover indicates a higher level of activity and trading in the FX markets. It suggests that there was increased demand for both spot transactions and derivative products during this period.
The exchange stated that the WoW increase in FX Derivatives turnover was solely driven by the 6.06 ($0.06 million) increase in FX Forwards turnover, whilst there was no activity in both Exchange- Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards (formally known as the Naira-Settled OTC FX Futures) market.
Also, in the FX Spot market, the total value of transactions for the week ended October 13, 2023, was $682.92 million, representing an increase of 109.8 percent ($357.47 million) from the value of transactions executed in the week ended October 6, 2023 ($325.45 million).
There were no trades executed in the Exchange-Traded FX Futures & Cleared Naira-Settled non-deliverable Forwards markets. Within the period, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/¦ 772.92, compared to $/¦ 768.66 recorded in the week ended October 6, 2023, representing a depreciation of the Naira against the dollar by 0.55 per cent ($/¦ 4.26).
Further, FMDQ Exchange also announced the approval for the listing of the Development Bank of Nigeria ¦ 23.00bn Series 1 Fixed Rate Bond under its ¦ 100.00bn Medium-Term Note Programme on its platform.
FMDQ is Africa’s 1st vertically integrated FMI group, providing execution, clearing and settlement of transactions via FMDQ Exchange, FMDQ Clear and FMDQ Depository.
