Financial market update

08 October 2012, Sweetcrude, Lagos – Local and international financial market update.

EUR: The euro hovered near a two-week high against the dollar after the European Central Bank assured investors it was ready to buy bonds to tackle the debt crisis with further gains dependant on U.s jobs data later in the day

ZAR: South Africa’s rand extended its losses against the dollar to nearly 4 percent, plumbing a 3-1/2 year low as investors dumped local assets on worries about the impact of a wave of illegal strikes sweeping Africa’s biggest economy

GBP: The pound hit its highest in a week against the dollar but dropped to a two week low against the Euro as a fall in the U.S. unemployment rate to a neat- four year low lifted riskier currencies.

JPY: The dollar eased against the yen backing off from a two-week high hit late last week after a surprise drop in the U.S. unemployment rate soothed investor concerns about the U.S. economy’s outlook.

Bonds: Sellers session to close the week due to profit taking on the JPM bonds, relative stability expected in the new week.

Bills: Relatively calm session due to another OMO auction announcement, flat movement in the new week if the OMO issuance continues and there will also be a primary auction next week, hence supply of securities is guaranteed.

Money Market: OBB and O/N rate close the week at 10.50% and 10.75% respectively, total of NGN 315.93 bio was issued via OMO bills this week at three different auctions.

Indicative Currency Exchange Rates

                                      Bid           Offer

EURUSD                      1.2950       1.3050

GBPUSD                      1.6050       1.6150

USDJPY                       77.50          78.50

USDCHF                     0.9300       0.9350

GBPEUR                     1.2380        1.2480

USDZAR                     8.7000        8.7050

USDNGN                    156.00         156.50

JPYNGN                      1.9700        2.0300

CHFNGN                     167.43         171.43

EURNGN                     202.71         208.21

GBPNGN                     251.79          259.29

ZARNGN                     16.88            18.88

Interest rates

NIBOR (%)                    LIBOR (%)

O/N             10.3333     USD 1 month            0.21850

7 Day           10.7500     USD 2 month           0.28550

30 Day         12.2083     USD 3 month           0.35125

60 Day         14.0833     USD 4 month           0.44010

90 Day        14.7083      USD 6 month           0.61790

                                         USD 12 month           0.6250

Y/Y Consumer Inflation August 2012 :             11.7%

FX Reserves: 04 October 2012 (USD bn)         41.48

MPR                                                                          12.00%

Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.


                                Hi           Low          Close        Prev.Close

USD/NGN    157.23/33   156.55/65   157.05/15   156.55/65


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