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Banking

Fixed Income Market Turnover Drops By 31.12% In January

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FMDQ Securities Exchange in its January 2022 edition of (FIC) markets analysis disclosed that turnover in the fixed income and currencies market in the months stood at ₦14.13 trillion.

According to FMDQ, the turnover in January represent a month-on-month (MoM) decrease of ₦6.41 trillion from ₦20.54 trillion in December 2021.

The figures released FMDQ also represent a year-on-year (YoY) increase of 8.44 per cent (₦1.10 trillion) over ₦13.03 trillion recorded in the corresponding period in January 2021 respectively.

FMDQ Exchange in its report also noted that the total foreign exchange (FX) market turnover in January 2022 was $10.13 billion (₦4.22 trillion), representing an MoM decrease of 38.12 per cent ($6.24 billion) from the turnover of $16.37 billion recorded in December 2021

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According to the exchange, the MoM decrease in total FX market turnover was driven by the 25.03 per cent ($2.18 billion) and 53.02 per cent ($4.07 billion) MoM decrease in FX spot and FX derivatives turnover, respectively in January 2022.

It explained that the MoM decrease in FX derivatives turnover was driven by MoM decrease in turnover for FX swaps, FX futures and FX forwards by 69.97 per cent ($3.12 billion), 73.76 per cent ($0.54 billion) and 16.74 per cent ($0.42 billion), respectively.

The contribution of FX derivatives to total FX market turnover decreased by 11.27 percentage points (ppts) to 35.61 per cent in January 2022.

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