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Restricted Market Trading Comments

By Dara O’Sullivan and Ilan Solot

As Corona virus cases pass 25 million globally, we see mixed reactions across the markets with countries desperate to stimulate their economies. There has been an uptick in cases in both developed and emerging market countries. Of note, cases in India have passed over 3.6 million, Brazil has now passed 3.9 million cases, while Africa has seen a slowdown in new numbers. Liquidity levels in Ghana and Mauritius have seen a marked improvement while Nigeria still sees no change to its ongoing liquidity troubles.

Kuwait has resumed to normal operating hours and therefore will no longer feature here.

Indonesia: While there is no official lockdown in place, the market continues to operate on reduced trading hours. Government securities can now be traded up until 4.30pm. However, trading hours for FX continue to be reduced to between 9:00am until 3:00pm, compared to previous trading hours from 8:00am until 4:00pm.

Nigeria: Still no change with the ongoing liquidity issues. We have seen small pockets of liquidity on the back of inflows, but the overall picture remains challenging. The CBN is still the single largest provider of USD to foreign investors. However, the CBN have been using their USD reserves for national needs instead of providing liquidity to foreign investors. As a result, repatriation executions are rare. We continue to monitor the liquidity situation and will provide updates as they are received.

Sri Lanka: The market continues to operate on reduced trading hours. Banks are now operating on an amended schedule of 8:30am to 3:00pm local time. Previously, banks were operating on a reduced schedule of 8:30am to 1:15pm to facilitate with trading, settlement, cash clearing and FX related activities.

Philippines: The country remains in a general quarantine status as cases fluctuate. In May, the Philippine government extended the nationwide lockdown until further notice. The market continues to operate under reduced hours from 9:00am to 2:00pm. The cut off for FX activity is set at 2:00 pm.

India: With cases passing 3.6 million, the country remains in a state of general lockdown. The Reserve Bank of India (RBI) announced on April 30 an extension of the current lockdown scenario until further notice. All markets will be open from 10:00am to 2:00pm. For any clients actively trading this market, please continue to observe the current reduced temporary trading hours.

Kenya: The market has been experiencing limited USD liquidity and delays in repatriations. The FX market reduced its trading hours on March 30 and now operates from 9:00 am until 2:00 pm until further notice.



Chile: The Chilean interbank FX market reduced its operating hours. The FX market will close at 1:00 pm until further notice.