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
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.
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
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USD/NGN 157.30/40 157.15/25 157.30/40 157.25/35