Business

OTC market records 7.32% growth in May

Published

7 years ago

June 12, 2017

Olu Emmanuel

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By Chioma Obinagwam

Turnover recorded in the Over The Counter (OTC) market for the month of May 2017 increased by 7.32 per cent to ₦9.49 trillion in May, 2017 from the ₦6.95 trillion recorded in April 2017.

The OTC monthly report for the month of May, 2017 disclosed.

The turnover which was significantly boosted by transactions in Treasury Bills, accounted for 40.73 per cent of total value of the turnover.

Furthermore, turnover in FGN bonds accounted for 5.23 per cent of total turnover whereas Money Market activities 29.13 per cent while the Foreign Exchange(Forex) market accounted for 24.88 per cent of total turnover.

Although activities in the Forex market accounted for 24.88 per cent of total turnover, the FMDQ report indicated that the value of transactions in the Forex Market decreased by 15.03 per cent ($1.16bn) month-on-month.

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The decline, which was coming on the the heels reduction in supply of Forex into the market by the Central Bank of Nigeria(CBN) dropped by 49.50 per cent($1.07bn) to settle at $0.985bn in the month under review.

The report further noted that the eleventh Naira-settled OTC Forex Futures contract NGUS MAY 24 2018, with a total open contract worth $253.61mm, matured and settled within the reporting month.

“Liquidity flows via the Investor-Exporter Forex Window continued to improve gradually with a total of $1.93 billion traded as at the week ended May 26, 2017. Daily average turnover settled at $90.00mm, up from $44.00mm earlier during the month under review,” it stated.