Investments at the Fixed Income and Currency markets suffered a setback in the month of August as investors reduced their stakes to the tune of N4.46tn.
This represents a 23.8 per cent decline compared to the turnover recorded in July.
According to FMDQ, the platform where investors trade on short-term yield instruments, turnover in July was N18.72tn compared to N14.26tn recorded in August.
There has been pressure on the market since the beginning on this year, as turnover dropped by 38.56 per cent or N8.95tn, year-on-year compared to a turnover of N23.21tn recorded in August 2019.
Year to date, turnover in the market has recorded a decline to the tune of 5.38 per cent from N158.79tn YTD recorded as at August 31, 2019 compared to N150.25tn as at August 31, 2020.
A review of transactions in the month of August showed that the OMO bills and foreign exchange transactions were the highest contributors to the FIC markets in August 2020, jointly accounting for 53.58 per cent of the total FIC market turnover.
Total FX market turnover in August 2020 was $9.76bn (N3.76tn), representing a month-on-month decrease of 9.80 per cent ($1.06bn) from the turnover recorded in July 2020 $10.82bn.
Analysis of FX market turnover indicates that FX Derivatives decreased MoM by 7.96 per cent ($0.61bn) while FX Spot turnover decreased by 14.24 per cent ($0.45bn) in August 2020, as the current liquidity challenges in the FX market persisted.
