Financial market products & services update

Currency notes, financial chart and a compass.

Currency notes, financial chart and a compass.

25 May 2015, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: The current nationwide scarcity of refined petroleum products has reached a crisis point with a litre of petrol selling for between N200 and N600 in many parts of the country, while diesel, household kerosene and liquefied natural gas have also become elusive. Also, with power generation dropping to an all-time low of 1,327 megawatts, most Nigerian households are now living without electricity as they have also run out of fuel to power their generators. Already, the situation has started affecting companies. Unless urgent steps are taken by the Federal Government and all concerned stakeholders, many citizens will find it difficult to get to their various places of work and business as from today (Monday) due to the crippling scarcity of refined petroleum products occasioned by the refusal of marketers to import them and a strike by tanker drivers.

FX: Friday’s special auction closed with an estimated $150m sold and week to date sales estimated at about $400m [modalities unchanged]. Intervention rate was maintained at $/NGN 197.00.

FIXED INCOME: Nigeria Nigeria bonds marginally unchanged on very light volume. Slight demand came back to tbills with NGN247bn in the system after Thursday’s CRR debit but it was an extremely quiet session in both markets. Friday’s CBN report shows that actual debit for the CRR harmonization decision was NGN160.71bn. CRR maintenance period now will now be weekly (every Thursday) according to the latest circular. O/N rates closed at 12%.

COMMODITIES: Currently, WTI trades dead flat at 59.73, facing rejected at 60 barrier. Oil prices trades flattish this session with US crude futures boosted as the US driving season officially started, but with the rising US dollar preventing oil prices from further gains.

EUROPE: Greece cannot make a repayment to the International Monetary Fund (IMF) due on 5 June as it does not have the money, the interior minister says. “The four instalments for the IMF in June are €1.6bn, this money will not be given and is not there to be given,” Nikos Voutsis stated. Greece has to come to a deal with the IMF and EU to secure the final tranche of its bailout from the institutions. The finance minister meanwhile stated that progress was being made.

CHINA: China will cut import taxes on consumer goods by more than 50% on average in a bid to boost consumer spending. High tariffs for imported goods have prompted some Chinese consumers to shop abroad or through agents. By lowering the fees, China may hope to bring some of that consumer spending home. The government is particularly keen to promote domestic demand as the country is growing at its slowest rate since 2009. The tariff reduction is an “important measure to create stable growth and push forward structural reform”, said the Ministry of Finance.

Macro Economic Indicators
Inflation rate (YoY) for Nov., 2014                   8.70%
Monetary Policy Rate current                          13.00%
FX Reserve (Bn $) as at January 09 2015     29.758

Money Market Highlights
O/N                                  10.5833
30 Days                           14.6585
90 Days                           15.8832
180 Days                         16.9848

USD 1 Month                 0.1848
USD 2 Months               0.2320
USD 3 Months               0.2845
USD 6 Months               0.4187
USD 12 Months             0.7376

Benchmark Yields
Tenor     Maturity     Yield (%)
91d           27-Aug-15         11.61
182d         03-Dec-15         14.09
364d        05-May-16        14.97
2yr            27-Apr-17         13.78
3yr            29-Jun-19        13.79
5yr            13-Feb-20        13.71

Indicative Currency Exchange Rates
                          Bid       Offer
USDNG         196.00     199.50
EURUSD      1.0865      1.1067
GBPUSD       1.5389      1.5591
USDJPY        121.62      121.65
USDCHF       0.93845   0.9486
GBPEUR       1.4024      1.4228
USDZAR      11.8625     12.0659
JPYNGN      162.8397  162.9403
CHFNGN       212.59      214.28
EURNGN       221.59      222.95
GBPNGN        309.16     310.55
ZARNGN          15.90        17.83

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