Financial market products & services update

*Financial markets.

*Financial markets.

12 February 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Managing Director of the International Monetary Fund, Christine Lagarde, has said the organisation remains available for Nigeria whenever the country needs financial assistance from it.
The IMF boss noted that the persistent devaluation of the naira might not be a good measure for the Federal Government. Lagarde stated this in a recent online question and answer session on emerging market economies with media organisation from all over the world.
When asked the likelihood that Azerbaijan and Nigeria would need IMF loans, she said that the global financial body would do its best to assist the two countries in the face of huge economic challenges.

FIXED INCOME: Inflow from OMO maturity (N234bn) caused O/N rate to drop to 1% as well as hindered any bullish sentiments. This as expected buoyed demand in the bill market. Bonds started bullish. The Feb 2020s was the main attraction for apparent reasons – short covering. N21.8bn was traded on those. Sellers met happy buyers. The rest of the bond curve equally followed suit and it was a strong tone all through the day.

FX: The CBN weekly Special auction for this week held yesterday and the intervention rate was maintained at $/NGN 197.00.

COMMODITIES: Oil rebounded from the lowest level in more than 12 years amid the highest price volatility since 2009 as speculation swirls over whether producers will act to bolster the market.
Futures rose as much as 5.9% in New York after settling at the lowest since May 2003. The CBOE Crude Oil Volatility Index, which measures expectations of price swings, climbed to the highest level in seven years Thursday. Producers are ready to work together and suppliers won’t make cuts unless there is complete cooperation, United Arab Emirates Oil Minister Suhail Al Mazrouei said on a Sky News Arabia report posted online Feb. 10.

JAPAN: Japanese officials stepped up their expressions of concern about a soaring yen as the currency’s renewed strength threatened to undermine the government’s Abenomics program to revive the nation’s economy.
With the yen trading near a 15-month high against the dollar, concern is growing that this will reduce the competitiveness of Japanese exports and also cut the value of profits brought home from overseas operations. A weaker outlook for earnings risks undermining the country’s annual round of wage talks, currently under way. And by making imports cheaper, the trend also hurts the Bank of Japan’s campaign to spur inflation.

INDIA: India’s rupee headed for its biggest weekly decline since mid-January as overseas funds fled the nation’s stocks amid a global equity rout.
The currency is approaching a record low and is Asia’s worst performer this year amid renewed concern about the health of the world economy and as investor confidence in Prime Minister Narendra Modi’s ability to push through economic reforms dwindles. The S&P BSE Sensex index of shares has fallen more than 20% from a January 2015 record, meeting the common definition of a bear market.
The rupee retreated 1.2% this week and 0.3% on Friday to 68.47 a dollar as of 11:53 a.m. in Mumbai, according to prices from local banks compiled by Bloomberg.

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 10, 2016        27.873

Money Market Highlights
NIBOR (%)

O/N                                 1.0000
30 Day                            8.0424
90 Day                            9.4238
180 Day                         11.0243
LIBOR (%)
USD 1 Month                0.4285
USD 2 Months              0.5155
USD 3 Months              0.6205
USD 6 Months              0.8659

Benchmark Yields
Tenor      Maturity       Yield (%)
91d             05-May-16       3.33
182d           11-Aug-16         7.33
364d           02-Feb-17        9.28
2y                31-Aug-17       10.53
3y                30-May-18     10.70
5y                 13-Feb-20      12.02

Indicative Currency Exchange Rates
Bid        Offer

USDNGN        197.00       199.50
EURUSD         1.1183        1.1385
GBPUSD         1.4363       1.4599
USDJPY          112.65        112.72
USDCHF        0.97145      0.9816
GBPEUR        1.2744         1.2948
USDZAR       15.6613       15.8685

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