13 January 2017, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: Nigeria’s blue-collar oil union suspended a planned three-day warning strike that began Wednesday after the government brokered a deal between workers and oil companies, including units of Chevron Corp. and Exxon Mobil Corp. Union leaders called off the strike late Wednesday after an “exhaustive meeting” with oil company representatives and the minister of labour, Adamson Momoh. The companies “agreed to revive the collective agreement that was stalled, payment of workers entitlements and see how some sacked workers can be reinstated or their terminal benefits paid”. Talks will continue in two weeks “to assess implementation of resolutions reached.”
FX: The Naira continues to weaken at the parallel market to NGN 495 to a dollar, despite reports that Central Bank plans to support naira. The effects of the dollar shortage still straining the Naira pending Central Bank’s actions. The Naira continues to weaken at the parallel market to NGN 495 to a dollar, despite reports that Central Bank plans to support naira.
FIXED INCOME: More appetite for bills but a bit of sideways trading in bonds. Overall, markets were mostly quiet but skewed to the buyers. O/N rate closed lower at 7% as money market is now long N52bn.
JAPAN: During a state visit to the Philippines on Thursday, Japanese Prime Minister Shinzo Abe aimed to do the best thing he could in the face of the shifting balance of power in Southeast Asia: be a better friend than China. Late Thursday, the Japanese leader left the capital Manila to visit Mr. Duterte’s hometown of Davao. His overnight visit, analysts said, was aimed at shoring up goodwill from Japan’s friends at a time of uncertainty as a new U.S. president is sworn in and both China and Russia seek to expand their spheres of influence in Southeast Asia. While Japan has no direct claims of its own in the South China Sea, it faces its own challenge from China over uninhabited islands in the East China Sea that are administered by Tokyo.
US: The Obama administration launched a formal complaint Thursday against the Chinese government with the World Trade Organization over subsidies it says Beijing provides to the country’s vast aluminium industry. The complaint represents an escalation of trade disputes between nations with the world’s two largest economies not long before Donald Trump assumes the U.S. presidency. The complaint accuses China of funnelling artificially cheap loans from state-run banks to Chinese aluminium producers, helping the companies upgrade their facilities and expand production. China also subsidises aluminium production by providing producers with cut-rate coal and electricity, the complaint says.
COMMODITIES: Oil prices inched up on Friday, supported by reports on details of OPEC output cuts, although lingering doubts over producer compliance with supply reduction targets weighed on the market. Brent crude futures LCOc1, the international benchmark for oil prices, were trading at $56.04 per barrel at 0632 GMT (1.32 a.m. ET), up 3 cents from their last close. U.S. West Texas Intermediate (WTI) CLc1 crude futures were also up 3 cents at $53.04 per barrel. On the supply side, markets were bolstered by comments from top crude exporter Saudi Arabia which said that its output had fallen below 10 million bpd, to levels last seen in early 2015.
Macro Economic Indicators
Inflation rate (Y-o-Y) for November 2016, 18.48%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Jan 11, 2017, 26,765
Money Market Highlights
NIBOR (%)
O/N 9.5000
30 Day 16.2340
90 Day 17.5836
180 Day 21.3518
LIBOR (%)
USD 1 Month 0.76722
USD 2 Months 0.83333
USD 3 Months 1.02178
USD 6 Months 1.33461
USD 12 Months 1.06675
Benchmark Yields
Tenor Maturity Yield (%)
91d 13-Apr-17 14.16
182d 13-Jul-17 18.94
364d 21-Dec-17 21.53
2y 29-Jun-19 16.33
3y 13-Feb-20 16.30
5y 27-Jan-22 16.09
Indicative Currency Exchange Rates
Bid Offer
USDNGN 314.50 315.00
EURUSD 1.0538 1.074
GBPUSD 1.2072 1.2274
USDJPY 114.65 114.68
USDCHF 1.00345 1.0136
GBPEUR 1.1341 1.1545
USDZAR 13.3773 13.5807
JPYNGN 2.6997 2.8003
CHFNGN 312.74 314.39
EURNGN 338.92 340.28
GBPNGN 404.78 406.18