Financial market products & services update

*Financial markets.

29 March 2017, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: Kemi Adeosun, minister of finance, has said the economic template being used to foster the growth of Nigeria’s economy was copied from Lagos state. Making the admission on Tuesday, the minister said she was not ashamed to admit that Lagos’ successful model was being replicated at the federal level. Adeosun noted that Lagos was working because it had in place, an effective tax mechanism.

FX: Market Traded range on the day $/NGN 306.00-360.00

FIXED INCOME: The Mar 2036s were popular again yesterday. The market showed some resistance at 15.70%. Market could break this level today as demand is still evident ahead of the release of the Q2 bond auction calendar. The rest of the bond curve also edged slightly lower, showing some solidarity with the 36s. Bill market was well offered as money market is short N25bn. At the OMO auction, N15.928bn of 338day paper was sold at 22.47% yield. O/N closed at 13%.
CHINA: China’s benchmark money-market rate resumed its upward trend, halting a three-day decline after the central bank refrained from adding cash to the financial system at a time when lenders need funds before quarter-end checks. The one-week repurchase rate rose four basis points to 2.69 percent in Shanghai, according to weighted average prices, while the overnight cost added 10 basis points to 2.50 percent.

U.K.: Theresa May has signed the letter that will formally begin the UK’s departure from the European Union. Giving official notice under Article 50 of the Lisbon Treaty, it will be delivered to European Council president Donald Tusk later. In a statement in the Commons, the prime minister will then tell MPs this marks “the moment for the country to come together”. It follows June’s referendum which resulted in a vote to leave the EU. Mrs May’s letter will be delivered on Wednesday by the British ambassador to the EU, Sir Tim Barrow. The prime minister, who will chair a cabinet meeting in the morning, will then make a statement to MPs confirming the countdown to the UK’s departure from the EU is under way.

COMMODITIES: An unexpected disruption in Libyan crude output is helping oil investors shrug off record U.S. stockpiles that have undermined voluntary supply curbs by other OPEC nations. Brent for May settlement was 29 cents higher at $51.62 a barrel on the London-based ICE Futures Europe exchange.

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 24, 2017,        30.340

Money Market Highlights

O/N                            14.2917
30 Day                       16.4251
90 Day                       20.9159
180 Day                     23.0623
USD 1 Month           0.98222
USD 2 Months         1.02278
USD 3 Months         1.15189
USD 6 Months         1.42433
USD 12 Months       1.72400

Benchmark yields
Tenor      Maturity      Yield (%)

91d             22-Jun-17       18.66
182d           21-Sep-17       19.96
364d          22-Mar-18      22.50
2y               29-Jun-19       15.79
3y               13-Feb-20       15.95
5y               15-Jul-21         15.64

Indicative Currency Exchange Rates
Bid         Offer

USDNGN          314.50        315.00
EURUSD           1.0689       1.0891
GBPUSD           1.2317         1.2519
USDJPY            111.11          111.14
USDCHF           0.98805    0.9982
GBPEUR           1.1408        1.1612
USDZAR           12.9746      13.1780
JPYNGN            2.6997       2.8003
CHFNGN          307.31        309.00

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