Financial market products & services update

*Financial markets.

15 March 2017, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: Nigerian lawmakers aim to pass the 2017 budget by the end of March, the president of the upper house of parliament said on Tuesday, following a meeting with President Muhammadu Buhari. The budget lays out plans to pull Africa’s largest economy out of its first recession for 25 years, largely prompted by low global prices for the oil it produces and by attacks on energy facilities in the OPEC member’s Niger Delta oil hub last year. Buhari, a 74-year-old former military ruler who has faced rising disenchantment over his handling of Nigeria’s economy, presented his record 7.298 trillion naira ($23.21 billion) budget to lawmakers in December. “This month is our deadline to finish work on the budget and return it to the executive,” Senate President Bukola Saraki said after the meeting with Buhari and the head of parliament’s lower house. “We are working very hard to ensure we meet that deadline.

FX: Another CBN auction announcement Yesterday. $150mio on offer with banks bid amounts tied to the size of their balance sheet. Results expected to be announced today.
FIXED INCOME: February inflation print released Yesterday eased to 17.78% from 18.72% in Jan. The move lower was widely expected but still positively affected the tone in the fixed income market. Demand filtered in ahead of both auctions today. Auction prints will drive further activities. Street’s focus at the bond auction will be on the new 10year as current market conditions make it look attractive. First FGN savings bond auction is also now open; print is at 13.01% (subscription is only through DMO accredited stock broking firms).

COMMODITIES: Saudi Arabia told OPEC it dialed back on some of its supply cuts last month, pumping more than 10 million barrels a day as it replenished its own storage tanks.
The kingdom boosted production by 263,300 barrels a day to 10.011 million a day, according to a report from OPEC on Tuesday. Oil prices sank on speculation the country had grown impatient with fellow producers lagging in their own cutbacks. Saudi Arabia’s Energy Ministry said that the volume of crude supplied to markets nonetheless fell by 90,000 barrels a day to 9.9 million, as the extra supplies were moved into storage.

E.U: Polls on Wednesday will provide the first indications of how much damage Francois Fillon’s bid to become French president is incurring from his deepening legal problems. Opinion Way’s daily tracking poll, due for publication about midday, will include data from research conducted on Tuesday, when Fillon was charged with misuse of public funds over his wife’s allegedly fictitious job as a parliamentary aide. If op’s release at 6 p.m. should also include responses collected today.

U.K: U.K. Prime Minister Theresa May said her Brexit bill will become law in the “coming days” and she is on track to trigger European Union divorce talks by the end of March.
After passing through Parliament, the draft legislation requires the approval of Queen Elizabeth II in a final step known as royal assent. That could come later on Tuesday and will likely be announced by House of Commons Speaker John Bercow in London.
In a statement to the House of Commons, May chose not to budge from her public line that she will take action by March 31, though government officials this week have been more specific and signalled she will make her move in the last week of the month.

Macro Economic Indicators
Inflation rate (Y-o-Y) for February 2017, 17.80%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Mar 13, 2017, 30.194

Money Market Highlights
NIBOR (%)

O/N 17.1250
30 Day 16.6733
90 Day 19.9215
180 Day 22.9404
LIBOR (%)
USD 1 Month 0.91222
USD 2 Months 0.96944
USD 3 Months 1.13122
USD 6 Months 1.43211
USD 12 Months 1.72400

Benchmark yields
Tenor Maturity Yield (%)

91d 15-Jun-17 16.72
182d 14-Sep-17 19.34
364d 01-Mar-18 22.15
2y 29-Jun-19 15.76
3y 13-Feb-20 16.03
5y 15-Jul-21 16.19

Indicative Currency Exchange Rates
Bid Offer

USDNGN 314.50 315.00
EURUSD 1.0534 1.0736
GBPUSD 1.2129 1.2330
USDJPY 114.59 114.61
USDCHF 1.00275 1.0130
GBPEUR 1.1396 1.1600
USDZAR 12.9993 13.2037
JPYNGN 2.6897 2.7903
CHFNGN 311.24 312.92
EURNGN 334.14 335.50
GBPNGN 381.14 382.53

About the Author