By Nkiruka Nnorom
The 6th OTC foreign exchange, FX Futures contract, NGUS DEC 21 2016, with notional amount $477.45 million matured and has been settled on Wednesday, December 21, 2016, FMDQ OTC Securities Exchange, has said.
This has brought the total value of contracts so far matured on the OTC Exchange to circa $1.53 billion, and about $5.02 billion worth of OTC FX Futures contracts traded so far.
According to the Exchange, the contract, which stopped trading on December 13, 2016, was valued against the Nigerian Inter-Bank Foreign Exchange Fixing (NIFEX) Spot rate as published by FMDQ on December 21, 2016, with the associated clearing/settlement effected by the Nigeria Inter-Bank Settlement System PLC (NIBSS), in line with the FMDQ OTC FX Futures Market Operational Standards.
Consistent with its treatment for the previous five maturities (July – November 2016), the Central Bank of Nigeria introduced a new contract, NGUS DEC 27 2017, for $1.00 billion at $/₦274.00 to replace the matured contract and refreshed its quotes on the existing 1- to 11-month contracts.
Market participants are hopeful that the efforts of the CBN towards resuscitating the vibrancy of the
nation’s FX market will, in the coming year, yield the desired results and invariably allow for the potential of the OTC FX Futures market to be fully maximised by businesses, investors and governments with FX exposures, the Exchange added.