According to the report, the total turnover in the money market (MM) segment increased by 18.77% month-on-month, reaching N11.87 trillion in March 2024. This increase was solely due to a surge of 18.85% in Repos/Buy-backs, which compensated for a 31.89% decrease in unsecured placement/takings transactions. Furthermore, the average O/N rate and OPR rate (secured lending rate) rose by 8.17 and 8.27 percentage points, respectively, ending at an average of 29.30% and 28.46% in March 2024.
The financial market experienced notable activity driven by treasury bills, FGN bonds, and particular bills, which boosted the turnover. Trading intensity for FGN Bonds and T.Bills increased compared to the previous month, with specific securities such as bills maturing between >6M – 12M and FGN Bonds maturing between >5Y – 10Y being the most actively traded.
Additionally, there was an uptick in the level of the sovereign yield curve and yield spread, indicating a potential flattening and inversion. In contrast, real yields remained negative due to inflation rising faster than nominal yields.
According to the report, the total turnover in the money market (MM) segment increased by 18.77% month-on-month, reaching N11.87 trillion in March 2024. This increase was solely due to a surge of 18.85% in Repos/Buy-backs, which compensated for a 31.89% decrease in unsecured placement/takings transactions.
Furthermore, the average O/N rate and OPR rate (secured lending rate) rose by 8.17 and 8.27 percentage points, respectively, ending at an average of 29.30% and 28.46% in March 2024.
The total turnover in the FX derivatives market segment in March 2024 amounted to $3.70 billion (₦5.66 trillion), marking a month-on-month decrease of 18.98% ($0.87 billion) from the figures reported in February 2024.
The Exchange reported a decrease in FX derivatives turnover driven by a decline in FX swaps transactions, while FX forwards turnover increased. In the cleared Naira-settled non-deliverable forwards market, the near-month contract expired, settling positions worth $0.19bn, with no new far-month contracts introduced since August 2023.
Consequently, the cumulative NV of open Cleared Naira-Settled Non-Deliverable Forwards contracts declined to approximately $2.09bn as of March 28, 2024, marking an MoM decrease of 8.33% and a YoY decrease of 59.34%.
