FMDA Projects N10.9tn Liquidity Inflow for June

The Financial Market Dealers Association (FMDA) has projected a liquidity inflow of N10.9 trillion for June, marking a 3.51% increase from the previous month's inflow of N10.53 trillion. The report indicates that Open Market Operations (OMO) maturities will dominate this inflow, expected to reach N7.77 trillion, which constitutes 71% of the total projected liquidity.

Additionally, treasury bill maturities are estimated at N995.81 billion, and federal government bond coupon payments are projected at N278.99 billion. The FMDA also noted that the average system liquidity rose by 7.76% to N5.22 trillion, despite the Central Bank of Nigeria (CBN) withdrawing an estimated N12.06 trillion during May.

The report highlighted a slight depreciation of the naira by 0.64% in the foreign exchange market, alongside a significant increase in market activity. The FMDA advised market participants to maintain prudent foreign exchange risk management in light of the elevated liquidity conditions.