Economy
Fixed Income, Currencies Markets Transactions Drop 7.6% in 2020
By Adedapo Adesanya
The Fixed Income and Currencies (FIC) markets recorded a total transaction turnover of N215.1 trillion in 2020, a year-on-year decline of 7.6 per cent compared with N232.7 trillion recorded in 2019.
This was disclosed in the latest FMDQ Exchange’s FIC Monthly Report for December 2020, which indicated that the period ended December 31, 2020, total contribution was N19.9 trillion, representing a Month-on-Month (M-o-M) increase of 35.3 per cent and YoY 20.9 per cent respectively.
It was explained that Foreign Exchange (FX) and Money Market transactions were the highest contributors to the FIC markets in December 2020, jointly accounting for 59.2 per cent of the total FIC market turnover, while OMO Bills and Money Market transactions accounted for the majority of turnover in 2020, jointly contributing 50.5 per cent to total turnover.
Giving a further breakdown, the turnover indicated that FX market turnover in December 2020 stood at $19.72 billion (N7.79 trillion), representing a m-o-m increase of 81.3 per cent ($8.84billion) from the turnover recorded in November 2020 – $10.88 billion (N4.21 trillion).
This was majorly driven by increased FX intervention sales by the Central Bank of Nigeria (CBN) to Dealing Member Banks to reduce the build-up of unmet clients’ FX demand in December 2020.
Analysis of the growth in FX market turnover indicated that FX Spot and FX Derivatives turnover increased m-o-m by 60 per cent ($2.55 billion) and 94.9 per cent ($6.29 billion) respectively in December 2020, with 71.2 per cent of the increase in turnover driven by the turnover growth in FX Derivatives.
In the Over-the-Counter (OTC) FX Futures market, the FMDQ report stated that near month contract (NGUS DEC 30 2020) recorded a total outstanding notional value (NV) of $2.2 billion matured and was settled, while a new long-term (60-month or 60M) contract, NGUS DEC 31 2025 was introduced at a Futures price of N608.10/$1, representing 3.24 per cent ($/N19.07) m-o-m increase in the futures price, compared to the offer rate (N589.03/$1) of the previous 60M contract (NGUS NOV 26 2025).
The total notional value of open OTC FX Futures contracts as at December 31, 2020, stood at $8.09 billion, representing a further decrease of 9.5 per cent ($0.85 billion) from its value as at November 30, 2020 ($8.94 billion), and continuing its downward the trend since May 2020.
The average CBN Official Spot Naira/US Dollar exchange rate remained constant at N379/$1 in December 2020.
Conversely, the Naira depreciated against the US Dollar at the Investors’ and Exporters’ (I&E) FX Window, losing 2.07 per cent (N8.01/$1) to close at an average of N394.92/$1 in December 2020 from N386.91/$1 recorded in November 2020.
Also, the Naira depreciated against the US Dollar in the parallel market, losing 0.17 per cent (N 0.81/$1) to close at an average of N476.05/$1 in December 2020 from N475.24/$1 recorded in November 2020.
However the average spread between the exchange rates in the formal (I&E FX Window) and unregulated (parallel) FX markets reduced by 8.2 per cent to N81.13/$1 in December 2020, from N88.33/$1 in November 2020 due to the higher depreciation of the Naira in the I&E FX Window.
Consequently, the primary markets, average discount rates for the 91-day, 182-day and 364-day Treasury bills increased m-o-m by an average of 0.68 percentage points (ppts), to close at a range of 0.03 per cent – 1.85 per cent in December 2020, while the discount rates for CBN OMO bills decreased m-o-m by an average of 1.01 ppts to close at a range of 1.78 per cent – 6.07 per cent in December 2020.
Similarly, the coupon rates of the 15Y and 25Y FGN Bond issuances increased by an average of 1.58 ppts to close at a range of 6.95 per cent – 7.00 per cent in December 2020.
Meanwhile, the total value of T-bills and OMO bills outstanding as at December 31, 2020, remained constant m-o-m at N2.72trillion and N5.37 trillion respectively, whilst the total value of FGN Bonds outstanding as at December 31, 2020, increased M-o-M by 0.28 per cent (0.03 trillion) to N10.70 trillion from N10.67 trillion recorded as at November 30, 2020.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
