Financial market update

22 August, 2011, Sweetcrude, International News
. JPY: Japan will take decisive action against any speculative moves in the currency market.

. GBP: Sterling rose and was likely to test recent 3.5 month highs against dollar, as investors seeking refuge from turbulence in financial markets and the euro zone debt crisis bought the pound, given UK’s relatively decent fiscal position.

. CNH:
the Yuan closed down against the dollar, even though the peoples Bank of China set a slightly firmer midpoint due to dollar demand for trade settlement and profit taking after the Yuan hit a series of record highs in the past two weeks.

Nigeria News
. Bonds –
It was a quiet session in the bonds market on Friday as it was during the entire week, we anticipate some demand to return this week from the offshore players

. Bills –
there were some sell offs on the long dated maturities on Friday and some stability on the shorter tenors.

. Money Market – Unsecured O/N rates dipped to close at 7.25% as FAAC hit the system. we expect the market to be fairly liquid this week

. FX – Central bank of Nigeria has approved the removal of the limit of US 1 mio as maximum amount that can be sold to BDC’s from autonomous funds weekly ( Circular is attached)

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