By Adedapo Adesanya
FMDQ Securities Exchange has recorded a 49.5 per cent or N5.1 trillion growth in turnover in the Fixed Income and Currency (FIC) in the month of June.
In its monthly FIC report, the exchange said last month, fixed income and currency transactions stood at N15.31 trillion compared with N10.24 trillion in May 2021.
A breakdown showed that foreign exchange (FX) and money market transactions were the highest contributors to the FIC markets in June, accounting for 64.2 per cent of the total turnover.
The report stated that FX turnover during the period was N4.16 trillion or $10.12 billion, representing a month-on-month (MoM) increase of 38.4 per cent from N3. 64 trillion or $7.31 billion posted in May.
The MoM increase in total FX turnover was jointly driven by the 17.9 per cent ($750 million) and 65.73 per cent ($2.06 billion) increase in FX spot and FX derivatives turnover respectively in June.
The MoM increase in FX derivatives turnover was driven by a MoM increase in turnover across all derivative products.
In the month under review, the Naira depreciated against the US Dollar at the Investors and Exporters FX Window by 3 kobo to close at an average of N411.30/$1 compared to N411.27/$1 it recorded in May.
Similarly, the local currency depreciated against the greenback in the parallel market by 2.94 per cent or N14.29 to close at an average of N500.57 in June in contrast to N486.28/$1 it traded a month earlier.
Business Post analysis showed that following the ban on forex sales to the Bureau De Change (BDCs) on Tuesday, the Naira will depreciate in coming months with the possibility of the domestic currency trading at N700/$1 because of demand pressure and supply shortage to the market space, which the Central Bank of Nigeria (CBN) has described as an illegal market.
Modupe Gbadeyanka