Financial market products & services update

*Financial markets.

*Financial markets.

30 August 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: THE Central Bank of Nigeria has disclosed that total foreign exchange inflow into the economy in the second quarter of 2016 was $15.33billion. This, it said represented an increase of 3.7 percent above the level at the end of the first quarter but, showed a decline of 35.3 percent relative to the level at the end of the corresponding period of 2015. The development the CBN said was driven by increase in oil and non-oil receipts. Oil sector receipts according to the CBN “accounted for 20.5per cent of the total, which stood at $3.15billion, compared with $2.48billion and $3.65billion, recorded in the first quarter of 2016 and the corresponding period of 2015, respectively. “Non-oil public sector inflow, at $2.74 billion (17.9per cent of the total), rose by 87.7 per cent, above the level at the end of the preceding quarter. It, however, indicated a decline of 17.5 per cent from the level at the end of the corresponding period of 2015.

FIXED INCOME: Selling in bills increased again yesterday because of the OMO auction. N126.99bn of 199day paper was sold at 19.95% yield. Selling was also seen in bonds as negative sentiments persist around the inflation prints expected on the 31st. FAAC inflows hit late afternoon and O/N rates closed lower at 10%.

FX: NIFEX printed at $/NGN327.69 at yesterday’s close {previous print was $/NGN 315.25}

EUROPE: An ally of German Chancellor Angela Merkel said the U.K. will have to pay into the European Union’s budget if it wants the single market’s advantages, diminishing Britain’s prospects for a low-cost solution after its vote to exit the EU. Juergen Hardt, a lawmaker who speaks on foreign policy matters for Merkel’s Christian Democrat-led parliamentary caucus, cited the case of Norway, a non-EU nation that contributes to the bloc’s finances in return for market access. The issue wasn’t adequately addressed in the U.K.’s campaign leading up to the Brexit referendum in June, he said.

U.K.: A record number of investments were made by foreign firms in the UK in the year to April 2016, according to government figures. The Department for International Trade recorded 2,213 inward investment projects, up 11% on the previous year. The data shows the UK is the most popular destination in the European Union for overseas firms. However, there is concern over how the UK’s vote to leave the EU may affect future investment decisions. The report suggested that 116,000 jobs were created or safeguarded by overseas investment last year. The US remains the biggest source of inward investment, accounting for 570 projects, followed by China with 156 and India with 140.

COMMODITIES: Oil traded near $47 a barrel before weekly data forecast to show U.S. gasoline stockpiles shrunk while crude supplies expanded. Brent for October settlement, which expires Wednesday, was 1 cent lower at $49.25 a barrel on the London-based ICE Futures Europe exchange.

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 29, 2016,     26.195

Money Market Highlights

O/N                             18.3750
30 Day                        16.5930
90 Day                        17.8512
180 Day                      20.1380
USD 1 Month            0.5244
USD 2 Months          0.6537
USD 3 Months          0.8334
USD 6 Months          1.2315
USD 12 Months        1.06675

Benchmark Yields
Tenor         Maturity      Yield (%)

91d                01-Dec-16       15.83
182d             02-Mar-17       19.25
364d             03-Aug-17       21.38
2y                  27-Apr-17        20.23
3y                  29-Jun-19       15.15
5y                  15-Jul-21         15.06

Indicative Currency Exchange Rates
Bid         Offer

USDNGN       313.70       315.00
EURUSD       1.1067        1.1269
GBPUSD        1.2985       1.3187
USDJPY         102.34       102.37
USDCHF        0.97445    0.9846
GBPEUR        1.1615        1.1819
USDZAR        1 4.2813    14.4847
JPYNGN        307.4697  307.5703
CHFNGN       320.49      322.18
EURNGN       350.84      352.20
GBPNGN       411.20       412.60

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