Financial market products & services update

*Financial markets.

*Financial markets.

29 September 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Governor, Central Bank of Nigeria, CBN, Mr. Godwin Emefiele has said that the central bank’s development finance activities are focused on stimulating the economy.
Emefiele said this in a keynote address presented on his behalf by the Director, Monetary Policy Department, Mr. Moses Tule at the on-going 22nd edition of the Finance Correspondents and Business Editors Seminar holding in Abakaliki, Ebonyi State.
The CBN governor said the developmental initiatives became necessary given that Nigeria is a developing economy with the inherent developmental challenges. Furthermore, Emefiele highlighted the interventions of the central bank such as the N220 billion fund for micro, small and medium-scale enterprises, MSMEs, the Agricultural Credit Guarantee Scheme Fund (ACGSF), Commercial Agricultural Credit Scheme, CACS, among others.

FX: Spot market remains unchanged, with traded range reported between $/NGN 305.50 – 315.50. The bottom of the range continues to be attributed to CB intervention at end of each trading session.

FIXED INCOME: The market was relatively active yesterday, decent traded volumes but not a lot of price action. Bonds generally sold off, as we gradually climb back to the 15% level. T-bills, however, is flattish because there are buyers and sellers across the curve. The average yield on t-bills is now 19.42% while average bond yield is 15.02%. We expect the market to continue in this present trend till the end of the week.

U.S: Barack Obama suffered a unique political blow on Wednesday when the US Congress overturned his veto of a bill that would allow families of the victims of the September 11 terrorist attacks to sue Saudi Arabia.
The overwhelming bipartisan vote in both the Senate and House inflicted the first veto override of Obama’s presidency, less than four months before he leaves office. The White House issued an unusually scathing response.
“I would venture to say that this is the single most embarrassing thing that the United States Senate has done, possibly, since 1983,” press secretary Josh Earnest told reporters. “Ultimately these senators are going to have to answer their own conscience and their constituents as they account for their actions today.”

INDIA: India said it attacked terrorist camps just across the border in Pakistan late on Wednesday, the biggest military escalation since a standoff in 1999, as Prime Minister Narendra Modi retaliated for a deadly strike against Indian soldiers earlier this month.
Heavy casualties were inflicted on militants assembled to infiltrate India, Director General of Military Operations Ranbir Singh said in a briefing in New Delhi on Thursday. The operations have ended and no more are planned, he said, without elaborating.

COMMODITIES: Saudi Arabia has ended its flirtation with free oil markets.
It took the kingdom’s new oil minister, Khalid Al-Falih, just six months to blink, ending the country’s two-year policy of pump-at-will.
The decision at this week’s meeting of the Organization of Petroleum Exporting Countries in Algiers to cut production was necessitated by Saudi Arabia’s tattered finances. The consequences could be vast. Giants such as Exxon Mobil Corp. may soon be flush enough to revive abandoned projects. Finances of cash-strapped OPEC countries like Venezuela will get a boost.

Macro Economic Indicators
Inflation rate (Y-o-Y) for July 2016,      17.13%
Monetary Policy Rate current                 14.00%
FX Reserves (Bn $) as at Sep 27,2016   24.615

Money Market Highlights
O/N                           15.3333
30 Day                      18.9488
90 Day                      20.0440
180 Day                    21.1916
USD 1 Month           0.5266
USD 2 Months         0.6512
USD 3 Months         0.8537
USD 6 Months         1.2419
USD 12 Months       1.06675

Benchmark Yields
Tenor       Maturity        Yield (%)

91d             29-Dec-16          18.09
182d           30-Mar-17         19.17
364d          21-Sep-17           22.51
2y               30-May-18         18.74
3y               29-Jun-19          14.60
5y               15-Jul-21            14.81

Indicative Currency Exchange Rates
Bid          Offer

USDNGN          314.00        315.00
EURUSD           1.1119          1.1321
GBPUSD           1.2895         1.3096
USDJPY            101.39         101.42
USDCHF           0.96565      0.9758
GBPEUR           1.1481          1.1684
USDZAR           13.6465       13.8499
JPYNGN            3.0497        3.1503
CHFNGN           323.17        324.86
EURNGN           351.00       352.36
GBPNGN           411.55        412.94

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