Financial market products & services update

*Financial markets.

03 March 2017, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: The Nnamdi Azikiwe International Airport in Abuja, will be temporarily closed from midnight on Tuesday, March 7, 2017. This is to enable the Federal Airports Authority of Nigeria (FAAN), carry out major rehabilitation of the runway at the airport. FAAN’s managing director, Saleh Dunoma, confirmed this in a statement released on Thursday. Dunoma also confirmed that the Kaduna International Airport would serve as the alternate from March 8. Dunoma appealed to airline operators, passengers, airport users and other stakeholders to bear with the FAAN, saying it would continue to upgrade facilities at the nation’s airports. He explained that this was in compliance with the Nigerian Civil Aviation Authority (NCAA) and International Civil Aviation Organisation (ICAO) annexes.

FX: Offers for the greenback on the parallel market stood at $/NGN 457 as at yesterday.

FIXED INCOME: Backlog of unsettled trade is still weighing in on the fixed income market. Further communication from FMDQ on the issue caused another lull in trading activities. No active 2-way fixed income market again till Monday to accommodate some more cleaning up. O/N rate closed unchanged 12% as funding date for the FX auction announced today is not yet known.

EUROPE: The annual rate of inflation in the Eurozone rose above the European Central Bank’s target for the first time in four years during February, driven higher by another rise in energy prices. The move above the ECB’s target of close to, but below, 2% completes a big turnaround for the inflation measure. As recently as last May, consumer prices were below their levels of a year earlier, and the 1% level was breached for the first time in more than three years as recently as December. However, the surge in inflation is unlikely to prompt a big change soon in the ECB’s policy. Policy makers, including ECB President Mario Draghi, have been at pains over recent weeks to stress that they have yet to be convinced that the current rate of inflation will be sustained when the rise in energy prices comes to a halt.

FRANCE: European lawmakers voted Thursday to strip French presidential candidate Marine Le Pen of her immunity from prosecution over her tweeting of images of Islamic State executions. As a member of the European Parliament, Ms. Le Pen, the leader of France’s far-right National Front, is exempt from prosecution. But French prosecutors requested a waiver last year after she tweeted three images in 2015 of Islamic State executions, including the beheading of U.S. journalist James Foley. Under French law, disseminating violent imagery that can be seen by minors is a crime punishable by up to three years in prison and a fine of €75,000 ($78,850). In response to angry reactions from the Foley family and French politicians immediately after the Islamic State-related tweets, she said that she was merely “showing the reality of Daesh”—an Arabic acronym for the militant group.

COMMODITIES: Oil markets rose on Friday as the dollar edged away from a multi-week high, but prices are being held in check by unchanged Russian output for February, a sign of its weak compliance on a global deal to cut supplies. Benchmark Brent crude futures were up 21 cents, or 0.4 %, at $55.29 a barrel, as of 0755 GMT. WTI futures gained 16 cents, or 0.3 %, to $52.77 a barrel after dropping on Thursday to its lowest since Feb. 9.

Macro Economic Indicators
Inflation rate (Y-o-Y) for December 2016,      18.72%
Monetary Policy Rate current                            14.00%
FX Reserves (Bn $) as at March 01, 2017,       29,688

Money Market Highlights

O/N                              15.3333
30 Day                         14.4290
90 Day                         19.1817
180 Day                       22.6332
USD 1 Month             0.81056
USD 2 Months          0.89333
USD 3 Months          1.09278
USD 6 Months          1.40628
USD 12 Months        1.72400

Benchmark Yields
Tenor        Maturity       Yield (%)

91d              01-Jun-17         14.87
182d           31-Aug-17          18.75
364d           01-Feb-18         22.01
2y                29-Jun-19         15.91
3y                13-Feb-20         16.18
5y                27-Jan-22         16.01

Indicative Currency Exchange Rates
Bid           Offer

USDNGN      314.50          315.00
EURUSD       1.0414          1.0616
GBPUSD       1.2149           1.2351
USDJPY        114.25           114.28
USDCHF       1.00845       1.0186
GBPEUR       1.1548           1.1752
USDZAR       13.0209        13.2243
JPYNGN       2.6997           2.8003
CHFNGN      309.73           311.42
EURNGN      338.92          340.28
GBPNGN      404.78           406.18

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