Emmanuel Ochayi
FMDQ Exchange Sees Significant Growth in Secondary Market Turnover
The FMDQ Exchange experienced a notable surge in secondary market turnover in July 2024, reaching N30.63 trillion.
This increase represents a month-on-month (MoM) rise of 7.78%, amounting to N2.21 trillion, and an impressive year-on-year (YoY) growth of 53.78%, or N10.71 trillion, from July 2023.
Join our WhatsApp ChannelFMDQ Exchange Spot and Derivatives Markets Performance
According to FMDQ Exchange’s recently released monthly report, the total turnover for the Spot and Derivatives Markets in July 2024 was N27.66 trillion and N2.97 trillion, respectively.
The Spot FX Market Turnover alone was $7.39 billion (N11.48 trillion), reflecting a MoM increase of 10.02% from June 2024’s $6.72 billion.
An official from FMDQ Exchange commented, “The growth in our secondary market turnover is a testament to the robust performance and increasing confidence in the Nigerian financial markets.
This upward trend in both the Spot and Derivatives Markets indicates a strong and sustained interest in our exchange’s offerings.”
Naira’s Depreciation Against the Dollar
The report also highlighted the performance of the naira against the US dollar in July 2024.
The naira depreciated, with the spot exchange rate rising by 4.88% to an average of $/N1,560.32, compared to $/N1,487.74 in June 2024.
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The exchange rate fluctuated within a range of $/N1,500.32 to $/N1,621.12 throughout the month.
In the Derivatives Market, the total FX Market segment turnover was $1.91 billion (N2.97 trillion), marking a 13.81% MoM increase from June 2024’s figures.
“The rise in the FX Market turnover within the Derivatives Market shows the growing importance of these financial instruments in managing currency risk and ensuring stability in a volatile market,” the FMDQ Exchange official added.
Implications for the Nigerian Financial Market
The rising turnover in both the Spot and Derivatives Markets on the FMDQ Exchange suggests that Nigerian financial markets are becoming increasingly attractive to investors.
This trend is expected to continue as the market adapts to global economic shifts and local fiscal policies.
Market analysts are optimistic about the future performance of the FMDQ Exchange.
One analyst noted, “If the current growth trajectory continues, the FMDQ Exchange could see even higher turnover in the coming months, which would further solidify its position as a leading financial market in Africa.”
The FMDQ Exchange’s performance in July 2024 indicates a positive outlook for the Nigerian financial markets.
With significant increases in both the Spot and Derivatives Markets’ turnover and a growing interest in the FX Market, the exchange is poised for continued growth.
As the naira continues to adjust against the dollar, the role of the FMDQ Exchange in stabilising and driving the Nigerian economy cannot be overstated.
