Naira depreciates against Dollar to N427.01/$ in July
The Naira in the Foreign Exchange (FX) depreciated against the Dollar, with the exchange rate ($/N) increasing by 1.43 per cent or N6.0/ Dollar to close at an average of N427.01/Dollar in July 2022 from N420.98/ Dollar recorded in June 2022.
The FMDQ Exchange in its financial market monthly report on Wednesday disclosed that exchange rate volatility increased marginally in July 2022 compared to June 2022 as the Naira traded within an exchange rate range of N424.17 – N431.00/ Dollar in July 2022 compared to N419.00 – N425.50/Dollar recorded in June 2022.
According to the report FX market turnover was N3.16trillion or $7.40billion in July 2022, representing a MoM increase of 5.68per cent or N0.17trillionn from the turnover recorded in June 2022 (N2.99trillion).
The report stated that secondary market turnover FMDQ Exchange in July 2022 rose by 8.54 per cent MoM to N19.76trillion and a YoY increase of 16.45 per cent or N2.79trillion, respectively.
The report, said: “Total spot market turnover for all products traded in the secondary market was N17.53trillion in July 2022, representing a MoM increase of 8.30 or N1.34trillion from the turnover recorded in June 2022.
“The MoM increase in total spot market turnover was driven by the 40.82per cent or N2.38trillion and 5.68per cent or N0.17trillion increase in MM and FX transactions, respectively, which offset the 16.38 per cent or N1.21trillionn) decrease in fixed income (FI) transactions in July 2022.
“The increase in MM turnover was driven majorly by an increase in Repo/Buy-Back transactions despite a sharp decline in Unsecured Placements/Takings transactions, while the decrease in FI turnover was driven by the MoM decrease in transactions for all FI products except OMO Bills and Other Bonds.”
On non-sovereign securities, the report by FMDQ Exchange said: “Total value of corporate bonds listed on FMDQ Exchange in July 2022 was N116.00billion representing a 205.26per cent or N78billion MoM increase on the value listed in June 2022. Corporate bond listings emanated solely from one (1) issuer in the Manufacturing sector.
“Similarly, total value of CPs quoted on FMDQ Exchange in July 2022 was N21.16billion, representing a MoM decrease of 48.20per cent or N19.69billion from the value of CPs quoted in June 2022.
“In July 2022, total outstanding value for corporate bonds and CPs increased MoM by 10.95per cent or N113.80billion and 1.11per cent (N5.78billion) to N1,153.50billion and N524.58billion respectively.”
