The monthly report of FMDQ Markets for April has shown that spot FX market turnover for the month was $9.12 billion (N11.14 trillion).
This eepresents a month-on-month (MoM) decrease of 27.68 per cent ($3.49 billion) from the $12,61 billion turnover recorded in March.
According to the report, in the FX market, the Naira steeply appreciated against the US Dollar, with the spot exchange rate ($/N) decreasing by 22.45% ($/N279.38) to close at an average of $/₦1,244.66 in April 2024 from $/N1,524.04 recorded in March 2024
It further pointed out that exchange rate volatility slightly increased in April 2024 as the Naira traded within an exchange rate range of $/N1,072.74 – $/N1,419.11 compared to $/N1,300.43 – $/N1,627.40 recorded in March 2024.
The report further showed that FI’s market turnover in April 2024 was N8.33 trillion, representing a MoM decrease of 30.87% (N3.72 trillion) from the turnover recorded in March 2024 (N12.04 trillion).
FMDQ noted that the MoM decrease in turnover was driven by the 18.35% (N1.03 trillion), 31.94% (N0.90 trillion), and 34.92% (N0.91 trillion), decrease in turnover across T.Bills, FGN & Other Bonds, OMO Bill and Special Bills transactions, respectively
“As a result, the trading intensity (TI) for FGN Bonds and T.Bills decreased MoM by 0.04bps and 0.20bps to 0.08 and 0.40, respectively,” it added.
It said total spot market turnover for all products traded in the secondary market in April 2024 was N26.06 trillion, representing a MoM decrease of 39.68% (N17.14 trillion) from March 2024 figures.
The MoM decrease in total spot market turnover, the report noted, was driven by a decrease in turnover across all spot market product categories, as FX, MM, and FI turnover decreased MoM by 42.27% (N8.15 trillion), 44.40% (N5.27 trillion) and 30.87% (N3.72 trillion), respectively.
It also showed that the decrease in FI and MM turnover was driven by the MoM decrease across all product categories in the review period.
