Financial market products & services update

*Financial markets.

01 March 2017, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: The National Bureau of Statistics on Tuesday released the Gross Domestic Product growth rate for the country, with the economy recording a contraction of -1.3 % in the fourth quarter of 2016 and – 1.5 % for the year. The NBS explained that in real terms, the economy recorded a decline of N240.8bn from N18.53tn in the fourth quarter of 2015 to N18.29tn in the fourth quarter of last year. The negative growth of 1.3 % in the fourth quarter of last year, according to the NBS report, is less severe than the -2.24 % decline recorded in the third quarter. The GDP growth rate for the first, second and third quarters of 2016 was -0.36 %, -2.06 % and -2.24 %.cent.

FX: Offers for the Dollar on the parallel market were at NGN 450 at EOD yesterday.

FIXED INCOME: Another OMO auction was announced Tuesday and interest was still poor. O/N closed at 12%.

INDIA: Growth in India’s gross domestic product slowed to a two-year low late last year as Prime Minister Narendra Modi’s sudden crack down on the use of cash, a move intended to fight crime, hindered consumer and corporate demand. Asia’s third-largest economy grew a greater-than-expected 7% from a year ago in the three months through December, according to government data released Tuesday. That is down from 7.4% in the preceding quarter and the slowest growth the South Asian nation has recorded since the end of 2014. Despite losing momentum, India maintained its top spot as the world’s fastest-growing large economy, a title it has held for close to two years. China’s economy expanded 6.8% during the quarter. While India has been minting new bills at a record rate, the lingering scarcity of cash could hurt demand for months to come as consumers wait for more bills and slowly switch to cashless transactions, including apps and credit cards.

US: U.S. consumer spending was stronger than initially thought in the final months of 2016, though the overall economic-growth trajectory remained muted amid downward revisions for business investment and government spending. Gross domestic product, expanded at an inflation and seasonally adjusted annual rate of 1.9% in the fourth quarter, the Commerce Department said Tuesday. That was unchanged from the initially reported figure. The latest figures are a marked deceleration from the third quarter’s 3.5% pace, which had been the strongest reading in two years. They are, however, broadly in line with an economy that has, through ups and downs, settled at a roughly 2% growth pace since the recession ended.

COMMODITIES: Crude oil prices rose on Wednesday as the dollar trimmed gains and a speech by U.S. President Donald Trump offered little on plans by his administration to boost U.S. oil production. The market is being underpinned by OPEC’s production cuts while rising U.S. shale oil output is keeping a lid on prices. West Texas Intermediate crude futures gained 11 cents, or 0.2%, to $54.12 a barrel by 0415 GMT and Brent crude added 15 cents, or 0.3%, to $56.66.

Macro Economic Indicators
Inflation rate (Y-o-Y) for December 2016,      18.72%
Monetary Policy Rate current                            14.00%
FX Reserves (Bn $) as at Feb 27, 2017,            29,605

Money Market Highlights
NIBOR (%)

O/N                             15.2500
30 Day                        16.8636
90 Day                        20.4118
180 Day                      22.9549
LIBOR (%)
USD 1 Month            0.78444
USD 2 Months          0.85167
USD 3 Months          1.05456
USD 6 Months          1.36128
USD 12 Months        1.72400

Benchmark Yields
Tenor       Maturity         Yield (%)

91d              01-Jun-17         14.61
182d           31-Aug-17          19.10
364d          01-Feb-18          21.85
2y               29-Jun-19          16.04
3y               13-Feb-20          16.45
5y               27-Jan-22          16.06

Indicative Currency Exchange Rates
Bid          Offer

USDNGN        314.50       315.00
EURUSD         1.0432      1.0634
GBPUSD         1.2262       1.2464
USDJPY          113.54       113.57
USDCHF        1.00505    1.0152
GBPEUR        1.1635       1.1839
USDZAR        12.9745    13.1779
JPYNGN        2.7197       2.8203
CHFNGN       310.79      312.48
EURNGN       338.92     340.28
GBPNGN       404.78      406.18

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