By Nkiruka Nnorom

TOTAL transaction in the Over-the-Counter, OTC market for fixed income and currency market has risen to N10.85 trillion in the month ended September 30, 2016, according to the data from the FMDQ OTC Securities Exchange Plc.

The turnover represents 11.30 per cent or N1.10 trillion increase over N9.75 trillion recorded a month earlier and year-on-year decline of five per cent.

Analysis of the report showed that transactions in the T.bills accounted for 36.85 per cent of the total value while turnover in the foreign exchange, FX, market accounted for 23.29 per cent of total turnover. The Federal Government bonds and unsecured placements/takings accounted for 7.16 per cent, as against 2.92 per cent recorded in August.

The reports further showed that secured money market accounted for 28.24 per cent as against 31 per cent achieved in the previous month.

Transactions in the foreign exchange market settled at 7.19 billion dollars in September, an increase of 33.10 per cent or (1.79 billion dollars) compared to the value recorded in August.

The report indicated that the third Naira-settled OTC FX Futures contract, NGUS SEP 28 2016, with a total outstanding amount of 179.93 million dollars, priced at N296 per dollar, matured and was settled within the month.

According to the report, the Central Bank of Nigeria (CBN) revised all the rates on all outstanding OTC FX Futures contracts, whilst a new 12-month contract – NGUS SEP 20 2017, was introduced at N243.50 per dollar.

The report indicates that member-to-member trades stand at 1.05 billion dollars during the month, thus representing an increase of 97.15 per cent, compared to trades recorded in August.

It further showed that the Naira, during the period under review, appreciated by 1.46 per cent to close at N311.62 per dollar in the inter-bank market, while it depreciated by 13.10 per cent to close at N475 per dollar in the parallel market.

Furthermore, turnover in the fixed income market for the month settled at N4.78 trillion, 6.42 per cent or N0.33 trillion decrease over the value recorded in the previous month, with transactions in the T.bills market accounting for 83.74 per cent of the fixed income market turnover.

Outstanding T.bills at the end of the month amounted to N7.01trillion as aganist N6.62 trillion in August while FGN bonds outstanding volume increased by 1.91 per cent or N0.12 trillion to close at N6.45trn in the period under review. The statistics also showed that trading intensity in the fixed income market settled at 0.60 and 0.12 for T.bills and FGN bonds respectively,