Financial market products & services update

*Financial markets.

*Financial markets.

23 August 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The Minister of Finance, Mrs. Kemi Adeosun, has called on the Islamic Development Bank to support Nigeria in rebuilding the northeast ravaged by Boko Haram.She made the appeal on Monday in Abuja during the inauguration of the IDB Country Gateway office. Adeosun said that Nigeria was striving towards attaining the Sustainable Development Goals and would welcome the IDB’s support to achieve them. She said, “I call on the IDB Group to work with development partners in operationalising the recovery and peace building assessment and implementation of the recently constituted June 2016 Buhari plan for the revitalisation of the North-East. “This entails addressing aspects of the intervention relating to peace building, stability and social cohesion.

FX: NIFEX printed significantly lower on the day at $/NGN329.50 {$/NGN344.00 previous print}.

FIXED INCOME: We had a very calm start to the week. Some demand still evident in bills but mostly on the short dates. No bill maturity this week so we do not expect any OMO auction. Bond market returned to quiet mode. Average yield on bills now 17.73% and bonds 15.11%. O/N rate closed at 16%.

INDIA: Indian state-run banks bought a record amount of sovereign bonds Monday after a selloff following the naming of Urjit Patel as the next central bank governor pushed yields to the highest in almost seven months. National lenders, the biggest holders of the debt, bought a net 133.9 billion rupees ($2 billion) of securities.

E.U.: Germany’s economy lost some momentum this month as manufacturing cooled and the services sector posted its weakest performance in 15 months. Purchasing Managers’ Index fell to 54.4 from 55.3 in July. The decline was steeper than economists forecast, though the measure remained well above the 50 level that divides expansion from contraction. The services gauge dropped to 53.3 — the lowest since May 2015 — from 54.4, and confidence in the sector was close to a two-year low.

COMMODITIES: Oil extended its retreat from a seven-week high and Asian energy shares declined, while the dollar weakened versus major peers as traders weighed prospects for a U.S. interest-rate hike this year. European equity index futures advanced. West Texas Intermediate crude for October delivery slid 1 percent to $46.92 a barrel.

Macro Economic Indicators
Inflation rate (Y-o-Y) for June 2016, 16.50%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Aug 19, 2016, 25.709

Money Market Highlights

O/N 25.5417
30 Day 17.2781
90 Day 18.1919
180 Day 20.2318
USD 1 Month 0.5211
USD 2 Months 0.6468
USD 3 Months 0.8171
USD 6 Months 1.2146
USD 12 Months 1.06675

Benchmark Yields
Tenor Maturity Yield (%)

91d 17-Nov-16 14.79
182d 16-Feb-17 17.08
364d 03-Aug-17 21.56
2y 27-Apr-17 18.42
3y 29-Jun-19 14.94
5y 15-Jul-21 15.03

Indicative Currency Exchange Rates
Bid Offer

USDNGN 330.00 350.00
EURUSD 1.1244 1.1446
GBPUSD 1.3085 1.3287
USDJPY 100.03 100.06
USDCHF 0.95525 0.9654
GBPEUR 1.1521 1.1725
USDZAR 13.3684 13.5718
JPYNGN 329.2797 329.3803
CHFNGN 342.29 343.98
EURNGN 373.14 374.50
GBPNGN 433.65 435.05

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