Financial market products & services update

*Financial markets.

10 April 2017, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: The Minister of State for Power, Works, and Housing, Alhaji Mustapha Shehuri, has said that the country is gradually getting out of its economic recession. He pleaded with Nigerians to be patient with President Muhammadu Buhari’s government, adding that it was addressing the myriad of developmental challenges in the country. The minister reiterated that Buhari was committed to providing affordable housing for Nigerians in fulfillment of one of his campaign promises to the electorate.

FX: Traded range on Friday was $/NGN 305.65– 306.15.

FIXED INCOME: Friday was a quiet end to the week. Some demand came back into bonds. There is a bond auction this week – on offer is N35bn 5yr and N50bn each on the 10 and 20yr. O/N rate closed at 15%.

U.S: The US unemployment rate fell to its lowest in almost a decade in March, despite the economy adding a smaller than expected number of jobs. Employers added 98,000 jobs last month – far fewer than the 180,000 expected by economists and less than half the figure for January and February. However, the unemployment rate fell from 4.7% in February to just 4.5% – the lowest since May 2007. Anything under 5% is considered to indicate “full employment”. The economy needs to create 75,000 to 100,000 jobs a month to keep pace with growth in the working-age population. The US had added more than 200,000 jobs in both January and February, but March brought lower temperatures and a major storm to the North East, which was likely to have hit hiring.

U.K.: Britain will be able to increase its exports to India by more than £2 billion per year after Brexit by cutting EU red tape, a new analysis has found. The UK currently faces significant tariffs on its trade with India because of the European Union’s failure to agree to a free trade deal. The deal has been held up for a decade by European Union regulations on intellectual property and data protection, with which India is refusing to comply. But after Britain leaves the EU, the deal can go ahead because British trade negotiators regard the disputed EU rules as unnecessary.

COMMODITIES: Oil headed for its highest settlement in a month as Russia signaled it Is weighing an extension of the OPEC-led production cuts, offsetting concern rising U.S. production will exacerbate a global glut. Brent for June settlement climbed as much as 35 cents, or 0.6 percent, to $55.59 a barrel on the London-based ICE Futures Europe exchange.

Macro Economic Indicators
Inflation rate (Y-o-Y) for February 2017,     17.78%
Monetary Policy Rate current                         14.00%
FX Reserves (Bn $) as at Apr 05, 2017,        30.325

Money Market Highlights

O/N                             15.8750
30 Day                        16.7336
90 Day                        20.6188
180 Day                      22.9713
USD 1 Month            0.9900
USD 2 Months          1.0261
USD 3 Months          1.15761
USD 6 Months          1.4296
USD 12 Months        1.72400

Benchmark Yields
Tenor        Maturity     Yield (%)

91d              06-Jul-17        18.04
182d           05-Oct-17        20.13
364d           22-Mar-18      22.37
2y                29-Jun-19       15.81
3y                13-Feb-20       15.87
5y                15-Jul-21         15.83

Indicative Currency Exchange
Bid       Offer

USDNGN         314.50      315.00
EURUSD          1.0478      1.068
GBPUSD           1.2293     1.2495
USDJPY            111.23      111.26
USDCHF          1.00495   1.0151
GBPEUR          1.1614       1.1818
USDZAR          13.7754    13.9788
JPYNGN          2.6997     2.8003
CHFNGN         302.51     304.20

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