As part of its plan to fully resuscitate the vibrancy of the Nigerian foreign exchange (FX) market, the Central Bank of Nigeria (CBN) has continued to support the operations of the OTC FX Futures market. By offering new contracts to replace matured ones and actively refreshing its quotes on the existing contracts, in line with the FMDQ OTC Securities Exchange (“FMDQ” or the “OTC Exchange”) reference rate for foreign exchange activities in the recently introduced Investors’ & Exporters’ FX Window – the NAFEX, the apex bank again displays its determination to maintain market stability and create an environment conducive for foreign and Nigerian portfolio investors.
Accordingly, having ceased trading eight (8) days in advance, the 11th OTC FX Futures contract, NGUS MAY 24 2017, with notional amount $253.61mm, matured and settled on FMDQ on Wednesday, May 24, 2017. This brings the total value of contracts so far matured on FMDQ, the OTC FX Futures Exchange, to $3.64bn, with a total of about $6.92bn worth of OTC FX Futures contracts traded so far.
A new 12-month contract, NGUS MAY 30 2018, for $1.00bn at $/₦396.06 has been introduced by the CBN to replace the matured contract. The OTC FX Futures quotes are available daily on FMDQ’s website and also published daily on the FMDQ Twitter page.