Nigeria: Trading in Fixed Income, Currency Markets Slumps to N14trn

9 March 2022

Trading in the fixed income and currency (FIC) market has slumped back to declining trend after the December 2021 uptick.

The January 2022 report just released by the FMDQ Exchange, Nigeria's financial markets trading platform, has put transaction volume at N14.13 trillion, 31.21 percent down from N20.54 trillion recorded in December, 2021.

This is even as the top ten dealing member firms in the FIC market dominated the trading, accounting for N11.05 trillion or 78.17 percent of the overall turnover, with the top three accounting for N5.55 trillion, representing 50.24 percent of the deals.

Stanbic IBTC Bank Plc, Access Bank Plc and United Bank for Africa Plc ranked first, second and third positions respectively.

Other dealing firms in the top 10 category include Zenith Bank Plc, First Bank of Nigeria Ltd, Ecobank Nigeria Ltd, Coronation Merchant Bank Limited, Standard Chartered Bank Nigeria Ltd, Sterling Bank Plc and Guaranty Trust Bank Limited.

Meanwhile, breakdown of trading activities in the FIC market showed that Foreign exchange, FX, made up of Spot FX and FX Derivatives, had the largest contribution, accounting for N4.22 trillion, representing 29.86 percent of overall market turnover and a MoM decrease of 38.12 percent. from the turnover recorded in December 2021.

Repurchase agreement (Repos) followed, accounting for N3.78 trillion or 26.74 percent of the total market turnover.

Transactions in Open Market Operations, OMO, Bills accounted for N2.71 trillion, representing 19.19 percent of the total market turnover, while bonds, Treasury Bills, CBN special bills, and unsecured placements & takings accounted for 12.12 percent, 3.83 percent, 7.86 percent and 0.41 percent of overall market turnover respectively.

In the FX Market, the Naira appreciated against the US dollar, gaining 0.06% ($/N0.26) to close at an average of $/N416.55 in January 2022 from $/N416.81 recorded in December 2021, trading within a range of $/N415.33 - $/N422.67.

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