12 February 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The continued retention of the single obligor limit, the maximum amount banks borrow to a single individuals or corporate at 20% of shareholders funds has raised concerns from bankers and other stakeholders. They say it is time the Central Bank reviews the single lending limit in view of the acute rise in shareholders’ funds in the aftermath of the regulatory induced industry consolidation. [BusinessDay]
EUROPE: European finance chiefs will seek to win back crisis-management momentum to navigate through emerging political pitfalls after markets signalled last week that the three-year crisis is far from over. Ministers from the 17-member euro area meet in Brussels today to discuss aid to Cyprus and Greece as a tightening election contest in Italy and a political scandal in Spain disrupt market calm. Group of 20 finance chiefs and central bankers will gather in Moscow Feb. 15-16.
INDIA: India’s industrial output unexpectedly slid in December for a second month as demand falters in an economy expanding at the weakest pace in a decade. Production at factories, utilities and mines fell 0.6 percent from a year earlier, compared with a revised 0.8 percent drop in November, the Central Statistical Office said in a statement in New Delhi today.
CHINA: China is to spend 120 billion yuan (19.25 billion dollars) on infrastructure and transport to boost flagging economic growth, state media reported on Monday. The Finance Ministry has allocated 70 billion yuan for projects including highways, waterways and docks, the official People’s Daily reported, with another 50 billion yuan budgeted to improve minor roads.
Bonds – Light sell off yesterday ahead of this week’s auction. Volumes relatively low in trading still, very cautious as there is a high possibility of excess demand pulling the auction cut off lower than current secondary levels.
Bills – Some selling on Monday especially on the short dated maturities. The longer dates more stable. No OMO activity yesterday.
Money Market – OBB and unsecured O/N rates went up to 13.50% and 13.75% to open the week.
Indicative Currency Exchange Rates
EURUSD 1.3372 1.3382
GBPUSD 1.5650 1.5660
USDJPY 94.11 94.51
USDCHF 0.9212 0.9232
GBPEUR 1.1703 1.1713
USDZAR 8.9640 9.0640
USDNGN 156.97 157.72
JPYNGN 1.6679 1.7179
CHFNGN 170.40 174.40
EURNGN 209.90 213.90
GBPNGN 245.66 249.66
ZARNGN 17.51 19.51
West Texas Intermediate oil traded near the highest level in more than a week after the biggest gain since January. U.S. crude stockpiles probably increased last week, a Bloomberg News survey shows. Crude for March delivery was at $96.89 a barrel, down 14 cents, in electronic trading on the New York Mercantile Exchange at 4:11 p.m. Sydney time.
NIBOR (%) LIBOR (%)
O/N 14.1250 USD 1 month 0.2022
7 Day 14.4167 USD 2 month 0.2475
30 Day 14.7500 USD 3 month 0.2931
60 Day 15.0833 USD 4 month 0.3456
90 Day 15.4167 USD 6 month 0.4649
USD 12 month 0.7650
Y/Y Consumer Inflation December 2012 : 12.00%
FX Reserves: 02 February 2013 (USD bn) 46.219
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.
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USD/NGN 157.33/43 157.22/32 157.28/38 157..20/30