Financial market update

22 October 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigerian News: The Debt Management Office has disclosed that as at end June, the nation’s debt stock stood at the following: External – N941.2 billion ; Domestic- N6.152 trillion. It added that of the $6.035 billion foreign debt commitment, the Federal Government’s portfolio is $3.820 billion, while the balance of $2.214 billion was the portion being held by States representing 63.30% and 36.70% respectively with total debt / GDP Ratio of 18.32% far below the 40% threshold approved for countries in Nigeria category.
Nigeria’s foreign exchange reserves jumped to $ 42.02 billion by Oct 17, their highest in 32 months and an increase of 3.11 percent, month – on –month.

Nigerian Bonds – Quiet session in the bond markets.

Nigerian Treasury Bills – Yet another OMO auction on Friday as the CBN continues to mop up the excess liquidity. This is pushing rates up on the short end out to 91 days which is where the concentration of OMO issuance has been in recent weeks. secondary market demand remains weak.

Nigerian Money Markets – The Nigerian Interbank lending rates eased by 100 basis points last week to an average of 10.41 percent, from 11.41 percent last week, after monthly budgetary allocations to government agencies flooded into the system.

Nigeria distributed 566.5 billion naira for the month of September compared to 570 billion from the previous month. Around half of it came through the banking system. Rates are expected to inch up this week because of cash outflows to foreign exchange and treasury bill purchases.

ZAR – South Africa’s Rand was largely flat for most of Fridays Johannesburg trade and worries over strikes in the mining sector are seen capping any significant gains.

EUR – The Euro crept up after Spain’s prime minister won a boost for his austerity drive with an election victory.

JPY – the dollar hit a three month high against the yen, as the yen remained pressured by persistent speculation that he bank of Japan may decide on more monetary stimulus at a policy meeting next week.

Indicative Currency Exchange Rates
                                   Bid             Offer
EURUSD                1.3000           1.3100
GBPUSD                1.6000           1.6100
USDJPY                 79.50              80.00
USDCHF                0.9200          0.9250
GBPEUR                1.2250           1.2300
USDZAR                8.6400          8.6450
USDNGN               157.25            157.75
JPYNGN                1.9700            1.9900
CHFNGN               169.00           170.00
EURNGN               204.00          206.00
GBPNGN               251.00           253.00
ZARNGN               17.50              19.50

Brent crude edged up towards $ 111 a barrel after a fourday decline spurred by worries over a fragile global economy, with supply risks supporting prices as violence in the Middle East intensified.

Interest rates
NIBOR (%)                       LIBOR (%)
O/N            10.3750         USD 1 month          0.21070
7 Day          11.0417         USD 2 month           0.26150
30 Day       12.3333         USD 3 month          0.31725
60 Day       13.7917          USD 4 month          0.39260
90 Day       14.3750         USD 6 month          0.55940
USD 12 month        0.89650
Y/Y Consumer Inflation September 2012 :       11.3%
FX Reserves: 18 October 2012 (USD bn)          42.064

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

                         Hi               Low           Close         Prev.Close
USD/NGN  157.30/40   157.15/25   157.30/40   157.25/35

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