Financial market products & services update

*Financial markets.

*Financial markets.

08 February 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Central Bank of Nigeria, CBN, has put the value of its development finance interventions across the country at about N1.36 trillion.
CBN Governor, Mr. Godwin Emefiele, who disclosed this yesterday emphasized that the central bank’s determination to improve lending to the real sector of the economy would stimulate employment generation and boost accretion to foreign reserves through non-oil exports.
A breakdown of the disbursements showed N300 billion had been set aside for Real Sector Support Facility, RSSF; N220 billion had also been disbursed for the Micro-Small and Medium Enterprises Development Fund, MSMEDF; the Nigeria Incentive Based Risk Sharing System for Agricultural Lending, NIRSAL, got N75 billion; and the Nigeria Electricity Market Stabilization Fund received N213 billion. Similarly, the Nigeria Export-Import Bank, NEXIM, support at N50 billion for the Export Refinancing and Restructuring Facility; and the Non-oil Export Stimulation Facility that received N500 billion.

FIXED INCOME: In the bond market, there was very little activity for most of yesterday. Real money account seen with decent sell interest on the short end of the bond curve. OMO auction seem to have been ignored today in the T- bill market. There was general buying interest in bills because of the excess cash in the system. Money market now long N995.98bn with O/N rates down to 1%.

FX: The CBN weekly Special auction for this week is expected to be announced today. The intervention rate was maintained at $/NGN 197.00 last week.

COMMODITIES: Oil snapped a three-day losing streak, rebounding from a close below $30 for the second time in less than a week.
Futures climbed as much as 2.1% in New York after dropping 3.9% Monday. Inventories probably expanded by 3.2 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. North American oil and natural gas drillers will need to cut an additional 30% from their capital budgets to balance spending even if crude rises to $40 a barrel, according to an analysis by IHS Inc.

SOUTH AFRICA: South Africa’s main opposition parties get their chance in the country’s highest court on Tuesday to force President Jacob Zuma to repay some of the state funds that were spent on upgrading his private home.
The Democratic Alliance and Economic Freedom Fighters rebuffed a proposal from Zuma for the Auditor-General to decide what he should pay. That would have avoided the hearing in the Constitutional Court in Johannesburg, just two days before he delivers his annual state-of-the-nation speech.

JAPAN: The Yen strengthened past 115 per dollar for the first time in more than a year and Japan’s benchmark 10-year yield fell in an unprecedented decline below zero as haven assets benefited from concern that global growth is fading.
Japan’s currency, which climbs in times of turmoil thanks to the nation’s current-account surplus, rose against all 31 major peers as the Topix index of shares tumbled 5.5%. The yield on the nation’s 10-year notes has dropped from 0.22% on Jan. 28, the day before the central bank unexpectedly announced it would lower rates on excess reserves to minus 0.1%.
The yen gained 0.9% to 114.78 per dollar as of 6:45 a.m. in London, and touched 114.21, the highest since November 2014.

Macro Economic Indicators
Inflation rate (Y-o-Y) for December 2015                   9.60%
Monetary Policy Rate current                                       11.00%
FX Reserves (Bn $) as at February 03, 2016             27.993

Money Market Highlights

O/N                                 1.0317
30 Day                            8.0061
90 Day                            9.5435
180 Day                         11.2359
USD 1 Month               0.4289
USD 2 Months             0.5209
USD 3 Months             0.6197
USD 6 Months             0.8672

Benchmark Yields
Tenor      Maturity      Yield (%)

91d             05-May-16     4.23
182d           04-Aug-16     7.62
364d          02-Feb-17      9.50
2y               31-Aug-17      10.85
3y               30-May-18    11.00
5y               13-Feb-20     12.30

Indicative Currency Exchange Rates
Bid         Offer

USDNGN         197.00        199.50
EURUSD          1.1076        1.1279
GBPUSD          1.4340        1.4542
USDJPY           115.40         115.44
USDCHF          0.98105     0.9912
GBPEUR          1.2816        1.3020
USDZAR          16.0446     16.2490

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