Financial market products & services update

*Financial markets.

*Financial markets.

22 December 2015, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele says the apex bank is evolving additional measures to boost the nation’s economy and stabilise the naira.

Emefiele made the remark at an Interactive Session with Media Editors. He declined to give details of the measures and modalities for their implementation.

Don’t ask me because I will not disclose our strategy for now”, adding that doing so would be counter-productive and pre-emptive. The CBN boss explained that the Nigerian economy was not as bad as being portrayed when compared with other economies in Africa.

He advised importers to restrict their imports to raw materials and equipment rather than finished products and food in order to reduce the pressure on the nation’s scarce foreign exchange.

FIXED INCOME: Bullish sentiments seen in the bond market yesterday as the market closed about 5bps tighter. T-bills experienced a bearish trading day yesterday. The final T-bill auction for this year will on Wednesday with N21.5bn – 91day and N31.83bn – 182day on offer. Trading activities remain lukewarm and will be so till after the holidays.

FX: The CBN daily auction closed for the year on Friday the 18th December 2015 and will resume January 4 2016.

COMMODITIES: Oil halted its decline near the lowest price in more than six years before weekly U.S. crude inventory and production data. February futures increased as much as 1% in New York. Inventories probably rose by 1 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. That would keep supplies about 130 million barrels above the five-year seasonal average. Market rebalancing may be delayed until 2017, according to Morgan Stanley.

CHINA: China’s leaders signaled they will take further steps to support growth, including widening the fiscal deficit and stimulating the housing market, to put a floor under the economy’s slowdown.

Monetary policy must be more “flexible” and fiscal policy more “forceful” as leaders create “appropriate monetary conditions for structural reforms,” according to statements released at the end of the government’s Central Economic Work Conference by the official Xinhua News Agency on Monday. It said the fiscal deficit ratio should be raised gradually.

While the leadership also endorsed structural reforms and reining in China’s increasing reliance on credit, the macroeconomic policy statements indicated concern about letting the economy’s expansion slow too much.

U.S: A gauge of the dollar headed for its biggest monthly decline since April as investors bet the Federal Reserve will wait until at least April to increase interest rates again after raising them last week

The U.S. currency has dropped 1.8% this month as traders anticipate only a 52% change the Federal Reserve will raise its benchmark rate by April, according to data compiled by Bloomberg based on futures. Australia’s dollar strengthened for a third day as prospects for additional stimulus from China boosted metals prices.

Macro Economic Indicators
Inflation rate (Y-o-Y) for November 2015             9.37%
Monetary Policy Rate current                                 11.00%
FX Reserves (Bn $) as at December 17, 2015       29.419

Money Market Highlights

O/N                              1.3233
30 Day                        8.5550
90 Day                       10.2171
180 Day                     12.4431
USD 1 Month           0.4130
USD 2 Months         0.4966
USD 3 Months         0.5855
USD 6 Months         0.8070

Benchmark Yields
Tenor       Maturity     Yield (%)

91d             24-Mar-16      2.30
182d           16-Jun-16       5.12
364d           15-Dec-16       7.49
2y                31-Aug-17       8.66
3y                30-May-18     9.54
5y                13-Feb-20     11.02

Indicative Currency Exchange Rates
Bid           Offer

USDNGN       197.00         199.50
EURUSD        1.0815         1.1017
GBPUSD        1.4791          1.4993
USDJPY         121.17          121.30
USDCHF        0.98785     0.9980
GBPEUR        1.3543         1.3747
USDZAR        14.9857       15.1890

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