Forex Derivatives Market Conversion Falls By 57.76% In August (thenews-chronicle.com)

The MoM decline in FX derivatives turnover was caused by a decline in transactions of 13.38% ($0.21 billion) and 62.05 percent ($0.17 billion) in FX Swaps and FX Forwards, respectively, as well as a persistent lack of activity in the FX Futures market, according to the August FMDQ Securities Exchange Financial Market Report.

In August 2023, the Foreign Exchange (forex) derivatives market segment saw a total turnover of $1.49 billion (₦1.14 trillion), indicating a fall of 57.76 percent ($0.79 billion) month over month from the July 2023 number.

Furthermore, in August 2023, the combined turnover for the Spot and Derivatives Markets was ₦16.54 trillion and ₦1.14 trillion, respectively.

According to the report, the Spot FX Market saw a turnover of $4.37 billion (₦3.34 trillion) in August 2023, down 6.13 percent ($0.29 billion) on the same month last year ($4.66 billion).

In the foreign currency market, the Naira strengthened against the dollar. The exchange rate ($/₦) fell by 0.85 percent ($/₦6.46) to end at an average of $/₦763.04 in August 2023, down from $/₦769.51 in July 2023. It fluctuated between $/₦738.18 and $/₦789.08.

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