By Dipo Olowookere
The Central Bank of Nigeria (CBN) has remained a strong force with supporting the operations of the Naira-settled OTC FX Futures market from inception, consistently offering quotes for the contracts over the past twenty-one (21) maturities to ensure sustainability of a market that has contributed phenomenally to the stability of the Nigerian FX market.
With the maturity of the NGUS APR 25 2018 contract (notional amount, $660.49), the total value of contracts so far matured and settled on FMDQ, stands at $9.13bn. A total of c. $12.03bn worth of OTC FX Futures contracts have been traded so far.
As with the other maturities, and in line with standards stipulated in the FMDQ OTC FX Futures Market Operational Standards, the contract stopped trading eight days before its maturity and was valued against the NAFEX – the Nigerian Autonomous Foreign Exchange Fixing – the FMDQ reference Spot FX rate published on Wednesday, April 25, 2018.
The associated clearing/settlement activities were effected accordingly.
This matured contract was replaced by the CBN with a new contract, NGUS APR 24 2019 for $1 billion at $/N362.44.
Adedapo Adesanya