Financial market products & services update

*Financial markets.

*Financial markets.

04 July 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: United States Ambassador to Nigeria, James Entwistle has reaffirmed his country’s commitment to assist Nigeria fight corruption and ensure that no stolen funds are laundered through its banking system. Entwistle stated this at the 240th U.S. Independence Anniversary celebration cocktail party in Abuja. “As you fight corruption, we offer technical assistance, training for investigators and prosecutors, and a commitment to ensure that no stolen funds are laundered through our banking system,” he said. The envoy, while commending Nigeria for improving its business climate, called for expanded trade and investment, pledging U.S. readiness to attract investors to develop Nigeria electricity sector

FX: The FX Market ended last week on a quiet note with the tone remaining bid. At Friday close, the greenback traded at an average of $/NGN 282.25.

FIXED INCOME: Magnitude of buying in bonds dropped after the 1st hour of trading on Friday. Enquiries from real money accounts brought the rally to a halt. The rest of the day from thereon saw slight sales before going absolutely quiet. Bill market equally well bid with average yield closing at 10.08% (- 175bps week on week). T-bill auction this week Wednesday but due to the Eid holiday we could see this rescheduled to Thursday.

U.K: As Britain stares at the prospect of another financial crisis, Mark Carney is breaking open an emergency toolkit that was created after the last one.
The Bank of England governor has been in full flow since the U.K.’s shock vote to leave the European Union and is set to make his third appearance in 12 days on Tuesday to address the threats facing the financial system. He’ll outline the macro prudential tools available to support the economy, boost business lending and encourage investment — and may ease capital requirements for lenders.
Britain’s decision to split with its biggest trading partner has roiled markets, rattled investors and left a political vacuum that made Carney a beacon of stability.

CHINA: The Yuan fell against a basket of currencies for a third day, prompting speculation the central bank is returning to a strategy of stability against a declining dollar and weakness against the exchange rates of its trading partners.
A Bloomberg replica of a 13-currency index tracked by the People’s Bank of China dropped 0.2% to 94.71, the lowest since at least October 2014. The onshore Yuan was little changed at 6.6627 per dollar as of 2:28 p.m. in Shanghai, while the offshore Yuan rose 0.03% to 6.6763 in Hong Kong. The PBOC strengthened the Yuan’s daily fixing by 0.04% to 6.6472.

COMMODITIES: Brent oil held gains above $50 a barrel as Nigerian militants claimed fresh attacks over the weekend, threatening the country’s efforts to raise output.
September futures rose as much as 0.8% in London after the contract advanced 1.3% Friday. The Niger Delta Avengers said they attacked five crude-pumping facilities overnight Sunday, dealing a blow to a government effort to enforce a cease-fire. Shale drillers in the U.S. brought back the most oil rigs of any week this year as confidence in a stabilized market prompts talk of expansion.

Macro Economic Indicators
Inflation rate (Y-o-Y) for May 2016,        15.60%
Monetary Policy Rate current                   12.00%
FX Reserves (Bn $) as at Jun 30, 2016,  26.363

Money Market Highlights
O/N                              4.4167
30 Day                       10.8248
90 Day                       13.6206
180 Day                     15.2903
USD 1 Month            0.4675
USD 2 Months          0.5475
USD 3 Months          0.6533
USD 6 Months          0.9236
USD 12 Months        1.06675

Benchmark Yields
Tenor      Maturity      Yield (%)
91d             06-Oct-16       9.65
182d          29-Dec-16       10.31
364d          15-Jun-17       13.29
2y               30-May-18     13.13
3y               29-Jun-19      13.36
5y               13-Feb-20      13.40

Indicative Currency Exchange Rates
Bid         Offer

USDNGN      281.00        284.00
EURUSD       1.1015         1.1218
GBPUSD       1.3186         1.3388
USDJPY        102.64        102.67
USDCHF       0.96925     0.9793
GBPEUR       1.1850        1.2054
USDZAR       14.4301      14.6336
JPYNGN       275.4197    275.5203
CHFNGN     287.96        289.65
EURNGN     223.44        225.80

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