Turnover in the Fixed Revenue and Currency ( FIC) markets for the month ended December 31, 2019 was N16.45trillion, representing a month-on-month (MOM) lower of 23.88p.c (N5.16trillion) on the turnover recorded in November 2019 ( N21.61trillion), FMDQ Securities Alternate report shows.
The report turnover in December represents a yearon-year ( YOY) lower of seven.11p.c (N1.26trillion) in comparability to the turnover recorded in December 2018 ( N17.71trillion). International Alternate ( FX) and OMO payments had been probably the most traded merchandise collectively accounting for 63.79p.c of the full FIC market turnover recorded in December 2019.
Complete FX market turnover in December 2019 was $18.49billion (N6.74trillion), representing a 10.30p.c ($2.12billion) MOM lower from the turnover recorded in November 2019.
Evaluation of FX market turnover by commerce kind indicated MOM decreases throughout all classes, with InterMember trades recording the very best proportion MOM lower at 12.56 p.c ($0.38billion), whereas MemberClient trades recorded the very best MOM lower in greenback (nominal) phrases, at $1.41billion (11.68p.c).
Moreover, evaluation by product kind indicated that the MOM lower in FX turnover was pushed by the 15.73p.c ($1.87billion) and a couple of.88p.c ($0.25billion) lower in FX Spot and FX Derivatives turnover, accounting for 88.18p.c and 11.82p.c of the MOM lower in complete FX market turnover respectively.
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In December 2019, the Naira-settled OTC FX Futures Contract ( NGUS DEC 24 2019) with complete open contract worth of $1.71billion matured and was settled, and a brand new contract, NGUS Jan 27 2021 for $ 1billion at $/ N367.48 was launched. This brings the full worth of open OTC
FX Futures Contracts to c. $9.67billion, whereas the full worth of contracts settled from inception to this point stands at c. $33.62billion.
The CBN Official Spot fee for $/N remained fixed at $/N307 in December 2019, whereas, the parallel market fee depreciated by $/N2 to shut at $/N362 from $/N360 recorded in November 2019. Additional, the Naira depreciated towards the US Greenback on the Traders’ and Exporters’ (I&E) FX Window by $/N1.70 to shut at $/N364.51 in December 2019 ($/N362.81 in November 2019) Fixed Revenue Market (T.payments, OMO payments and FGN6 Bonds).
On the finish of December 2019, the excellent worth of OMO payments decreased by 9.15p.c (N1.31trillion) MOM to N13.01trillion, while the excellent worth of T. payments remained flat at N2.58trillion. Conversely, the excellent worth of FGN Bonds elevated MOM by 3.17p.c (N0.29trillion) to shut at N9.43trillion in December 2019.
Buying and selling depth for T.payments and OMO payments decreased to 0.19 and 0.27 respectively in
December 2019 from 0.86 and 0.28 recorded in November 2019. The substantial lower in T.payments buying and selling depth was pushed by the 77.48p.c (N1.72trillion) MOM lower in T.payments turnover in December 2019.
Conve r s e l y , t rading depth for FGN Bonds elevated to 0.30 in December 2019 from 0.26 recorded in November 2019. 12 months-to-date (YTD) buying and selling depth for payments (T.payments and OMO payments) and FGN Bonds stood at 5.09 and 1.91 respectively in comparison with 5.50 and 1.49 recorded in the corresponding interval in 2018.
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In December 2019, T.payments and OMO payments throughout the 6M – 12M maturity bracket had been probably the most actively traded among the many short-term securities (that’s 1M – 5Y) accounting for 32.38p.c of the full Fixed Revenue market turnover, whereas FGN Bonds throughout the 20Y – 30Y maturity bracket had been probably the most actively traded among the many medium to long- time period securities (that’s 5Y– 30Y), accounting for 13.69p.c of the full Fixed Revenue market turnover.
Weighted common yields on quick, medium and longterm mounted revenue maturities decreased by 0.79p.c, 9.66p.c and 0.27p.c respectively in December 2019. As well as, the cease charges for T.payments on the major market declined in December 2019 from the charges recorded in November 2019 throughout all tenors while the cease charges for OMO payments declined for the 205day to the 364-day tenor which is attributable to the continued affect of the CBN directive on OMO auctions; no OMO payments had been offered for the 82-day to 112-day tenor. Consequently, inflation-adjusted yield was unfavourable throughout all tenors of the yield curve excluding the 15Y, 20Y and 30Y tenors which remained optimistic in December 2019.
Cash Market (Repurchase Agreements/buy-backs and Unsecured Placements/ Takings)
Complete turnover in the Cash Market decreased MOM by 51.39p.c (N2.84trillion) to N2.68trillion in December 2019, pushed by the Repurchase Agreements/ Purchase- Backs phase which recorded a MOM lower of 52.42p.c (N2.84trillion) in turnover to N2.58trillion in December 2019 from N5.42trillion in November 2019.