Financial market products & services update

*Financial markets.

*Financial markets.

20 November 2015, Sweetcrude, Lagos – Local and international financial market products and services update.
NIGERIA: In line with its policy of expansion of access base to credit and wealth creation through small-scale businesses in the country, the Central Bank of Nigeria (CBN) has available to be accessed by various states’ microcredit schemes a sum of N220 billion. A representative of the apex bank in Delta State, Mr Buka Ali, disclosed this during the disbursement of loans to the first batch of beneficiaries of the Delta State Micro, Small and Medium Enterprises Development Agency (DMSMA) on Thursday in Asaba. The agency disbursed a total of N324,180,000 to the beneficiaries, the first batch by the new agency under the Delta State Governor, Dr Ifeanyi Okowa, made up of clusters attached to several micro-finance banks engaged by the agency. A total of 227 clusters or groups of beneficiaries are expected to benefit from the revolving soft loans disbursed on Thursday.

FX: The CB maintained the Special auction rate at 197.00 yesterday.

FIXED INCOME: Another day of selling in both markets yesterday following the rally we saw on Wednesday. Streets seem unclear of the direction of the market and therefore causing more volatility. Tbills yields jumped back up by 36bps, while bond moved in same direction by 33bps. Local PFAs were showing bids amidst the sell off yesterday as they had done is past sell offs. Average tbill yield now 4.65% and 11.75% for bonds. Money Market is about N300bn long and O/N still at 1%.

COMMODITIES: Oil headed for a third weekly decline on signs a global glut will be prolonged amid the longest run of U.S. stockpile gains in seven months.
USA: The dollar’s surge is losing steam against the euro and yen as investors shift their attention to how fast the Federal Reserve will raise interest rates next year from whether the first increase in almost a decade will come in December. The greenback retreated from Wednesday’s seven-month high versus the euro and three-month high against the yen even as U.S. two-year yields offered the widest premium over Japanese securities since 2010 and over German debt since 2006. The currency instead heeded calls from Fed officials that U.S. rates be raised gradually as the job market heals and policy makers gain confidence that inflation will accelerate toward their 2 percent goal. The dollar was little changed at 122.86 yen as of 2:10 p.m. in Tokyo after sliding 0.6 percent Thursday, the biggest drop since Oct. 14. The U.S. currency was at $1.0715 per euro from $1.0734.

EUROPE: A panel appointed by India’s finance ministry recommended a 23.55 percent increase in the salaries and allowances of federal government employees, a move that may boost consumption in Asia’s third-largest economy and derail plans to curb the region’s widest budget deficit. The changes suggested by the Seventh Pay Commission will benefit as many as 4.7 million workers and about 5.2 million pensioners and will take effect starting Jan. 1. The government will need to spend 1.02 trillion rupees ($15.4 billion) in the year starting April 1 if the recommendations are accepted.

Macro Economic Indicators
Inflation rate (YoY) for Nov., 2014                   9.30%
Monetary Policy Rate current                          13.00%
FX Reserve (Bn $) as at January 09 2015     30.349

Money Market Highlights
O/N                                  1.1267
30 Days                          12.2519                                                                                                             90 Days                          13.8564
180 Days                        15.2488

USD 1 Month                  0.2132
USD 2 Months                0.2915
USD 3 Months                0.3776
USD 6 Months                0.6117                                                                                                               USD 12 Months              0.9413

Benchmark Yields
Tenor     Maturity     Yield (%)
91d           18-Feb-16          03.56
182d         26-May-16        06.58
364d         20-Oct-16         07.01
2yr            27-Aug-17         10.01
3yr            29-Jun-19         11.78
5yr            13-Feb-20         12.40

Indicative Currency Exchange Rates
                         Bid           Offer
USDNG         197.50         199.50
EURUSD      1.0574          1.0776
GBPUSD       1.5168          1.5370
USDJPY        122.86         122.89
USDCHF       0.01095      1.0211
GBPEUR       1.4202          1.4406
USDZAR      13.8875        14.0909
JPYNGN      161.8497      161.9503
CHFNGN       204.99       206.68
EURNGN       217.24        219.60
GBPNGN        309.40      310.79
ZARNGN          14.69         16.61

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