24 November 2017, Sweetcrude, Houston, Texas — The local and international financial market products and services update.
NIGERIA: The Federation Accounts Allocation Committee meeting was on Thursday postponed due to what was described as discrepancies in revenue figures presented to the committee by the Nigerian National Petroleum Corporation. The meeting, which is usually convened to consider and approve revenue allocation to the three tiers of government, is presided over by the Minister of Finance, Mrs. Kemi Adeosun. Other members of the committee are the Accountant General of the Federation, Alhaji Ahmed Idris; commissioners for finance of the 36 states; and representatives of revenue-generating agencies such as the Federal Inland Revenue Service, Nigeria Customs Service, and the NNPC, among others.
FIXED INCOME: OMO printed lower again by another 5bp (now 17.70% discount on N51.96bn sold). This could ignite another rally in bills if the rate continues to drop. The bond market was mostly quiet with the slight sales on the Mar 2027s absorbed. The narrower bid/offer spreads also seen was not sustainable with demand still lingering. O/N eased to close at 10% because of the N200bn maturity.
FX: Trades in the I&E window continue to go through @ sub $/N 362 with most of the trades closed between $/N 360 – 361. The average daily turnover this week in the window so far stands at $218.5m, up by 16.13% compared to last week. Results of the retail auction of the CBN is expected today. The CBN sold an estimated amount of $285m at the last retail intervention.
U.K.: The number of cars built in the UK last month rose by 3.5% compared with a year earlier, driven by higher exports. Just over 157,000 vehicles were made in UK factories in October, according to the Society of Motor Manufacturers and Traders (SMMT). Production for export increased by 5%. But output for the domestic market fell by 2.9%, as a result of “lower business and consumer confidence”, combined with “confusion over government’s diesel policies”, the SMMT said. In Wednesday’s Budget, the chancellor announced that new diesel cars that do not meet latest emissions standards would face a one-off tax increase in April. The increase will be levied on all diesel cars that do not meet the Real Driving Emissions Step 2 standards on emissions for the first year of ownership. This is expected to affect most new diesel cars.
SOUTH AFRICA: South Africa’s central bank kept its benchmark repo rate at 6.75 percent on Thursday, citing the increased risks of inflation posed by currency weakness, possible credit downgrades, and political jostling. The bank’s forecasting model implies three rate increases of 25 basis points each by 2019, Governor Lesetja Kganyago said, but “this does not mean an unconditional commitment to change policy rates in-line with this path”.
COMMODITIES: Oil headed for its best weekly advance in a month after an outage on the Keystone pipeline added to speculation crude supply could tighten and as investors await OPEC’s decision on extending output curbs. Brent for January settlement added 6 cents, or 0.1 percent, to $63.61 a barrel on the London-based ICE Futures Europe exchange. Prices rose 23 cents to $63.55 on Thursday.
Macro Economic Indicators
Inflation rate (Y-o-Y) for October 2017 15.91%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at November 21, 2017, 34.429
Money Market Highlights
NIBOR (%)
O/N 13.9583
30 Day 17.7304
90 Day 19.5112
180 Day 21.9462
LIBOR (%)
USD 1 Month 1.32750
USD 2 Months 1.40578
USD 3 Months 1.46233
USD 6 Months 1.65211
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 15-Feb-18 16.33
182d 17-May-18 18.95
364d 01-Nov-18 18.48
2y 29-Jun-19 14.78
3y 13-Feb-20 14.70
5y 27-Jan-22 14.55
Indicative Currency Exchange Rates
Bid Offer
USDNGN (I&E) 358.88 360.53
EURUSD 1.1767 1.1969
GBPUSD 1.3230 1.3432
USDJPY 111.41 111.44
GBPEUR 1.1131 1.1335
USDZAR 13.9168 14.1202
EURNGN 426.58 427.94
GBPNGN 479.22 480.61