Investors and Exporters popularly known amongst traders as the I & E Window, has exchanged $10.38bn worth of future contracts as a hedge against the volatility of the foreign exchange markets in Nigeria, that has being beset by instability of oil prices, rising budget deficits, degraded credit rating and instability in the socio economic environment. Investors. Nigeria, being an import dependent country relies on the wholesale dutch auction system of the Central Bank of Nigeria known at the Nigeria Autonomous Foreign Exchange Fixings to get prices for foreign currency supply that is used to import everything from rice, oil, raw materials for manufacturing, spare parts, groceries, household staples.
In a statement released by FMDQ (The OTC market platform for settlement of these contracts), it says “As it has been the norm for seventeen (17) maturities on FMDQ, the OTC FX Futures Exchange, the 18th OTC FX Futures contract matured and settled successfully on December 27, 2017. Having ceased trading on December 20, 2017, in line with the OTC FX Futures Market Operational Standards, the 18th OTC FX Futures contract, NGUS DEC 27 2017, with notional amount $499.20 million, matured and settled on FMDQ. This brings the total value of contracts so far matured on FMDQ to $7.35 billion.
Central Bank of Nigeria is listing the 19th Contract on FMDQ OTC platform, NGUS due to mature on the 26th of December 2018, for $1.00 billion dollars at $/₦362.84 as replacement for the matured 18th contract.
FMDQ in its annual newsletter says its top 10 dealing member banks for the year ended January to November 2017 are:
Rank Dealing Member (Bank)
- Stanbic IBTC Bank Plc
- Access Bank Plc
- Ecobank Nigeria Limited
- United Bank for Africa Plc
- Standard Chartered Bank Nigeria Limited
- First Bank of Nigeria Limited
- Diamond Bank Plc
- Citibank Nigeria Limited
- Union Bank of Nigeria Plc
- Guaranty Trust Bank Plc
The top ten (10) Dealing Member (Banks) accounted for 71.72% (₦93.36 trillion) of the overall turnover in the market, with the top three (3) accounting for 48.73% (₦45.49 trillion) of this sub-section of the market. Stanbic IBTC Bank PLC, Access Bank PLC and Ecobank Nigeria Limited. topped the League Table, ranking 1st, 2nd and 3rd respectively, in the value traded for the overall over-the-counter (OTC) market, maintaining their position in the League Table as the top three (3) banks for eight (8) consecutive months.
The other Dealing Member (Banks) maintained their positions on the League Table with the exception of Citibank Nigeria Limited and Diamond Bank PLC, which swapped positions to now occupy 7th and 8th places respectively.
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