01 December 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, says the growth of the economy solely depends on mobilising and applying human, natural and financial resources. Kachikwu said this in a presentation at the ongoing 9th Annual Forum of Laureates of the Of the Nigerian National order of merit (NNOM) in Abuja on Wednesday. The paper is titled“ Structures and Processes of Nigeria Mono Economy’’. He stated that Nigeria’s challenge was as a result of not diversifying its natural resources base for a useful result. Kachikwu said that the country’s economy would attain a great height of development if the economy was diversified and the mono-product economy practice was jettisoned.
FX: USD/NGN traded range was $/NGN 304.50 – 315.00 Yesterday.
FIXED INCOME: Market witnessed different tone from yesterday. There was a strong rally on short-dated bills which caused a ripple effect to the rest of the curve. Average t-bill yields dropped by 35bps across the curve. There was some RHS action from Fund Managers and PFAs on Bonds but this failed to ignite a rally due to an almost equal corresponding LHS interest. The PMA printed at 18.69% discount for the 364 – Day maturity, 1bp shy of the previous cut-off despite the increase in the amount allotted which was significantly higher than the amount put on offer. 91 & 182 days maturities printed at 13.99% & 17.49% respectively. O/N rate closed at 10%.
U.S: The November U.S. employment report is set to showcase a labour market that’s healthy enough for the Federal Reserve to raise interest rates later this month. President-elect Donald Trump may still find it a “disaster.”The payrolls report is the last one before the Fed’s December meeting, and while investors see an interest-rate increase as a certainty, policy makers will be looking for affirmation the job market is humming along. At the same time, Trump will have a chance to reconsider — or repeat – his characterization of the employment picture as an “economic disaster,” citing figures such as the number of prime-age Americans outside the labour force.
EU: Central bank chiefs on both side of the channel can agree that everyone is a loser from Brexit. Two days after European Central Bank President Mario Draghi said the U.K. has the most to forfeit from leaving the European Union, Bank of England Governor Mark Carney explained the flip side on Wednesday, saying a disruption to London’s financial district could hit vital fund flows into the euro area. The views of the two men underscore how destructive the political schism may become for the banking industry.
Macro Economic Indicators
Inflation rate (Y-o-Y) for October 2016, 18.33%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Nov 28, 2016 , 24.728
Money Market Highlights
NIBOR (%)
O/N 11.1250
30 Day 15.7389
90 Day 18.1429
180 Day 20.9982
LIBOR (%)
USD 1 Month 0.61672
USD 2 Months 0.73444
USD 3 Months 0.93067
USD 6 Months 1.29267
USD 12 Months 1.06675
Benchmark Yields
Tenor Maturity Yield (%)
91d 02-Mar-17 14.20
182d 01 -Jun-17 19.29
364d 02-Nov-17 22.23
2y 27-Apr-18 17.48
3y 29-Jun-19 15.53
5y 15-Jul-21 15.90
Indicative Currency Exchange Rates
Bid Offer
USDNGN 314.50 315.00
EURUSD 1.0509 1.0711
GBPUSD 1.2433 1.2635
USDJPY 114.24 114.27
USDCHF 1.01055 1.0207
GBPEUR 1.1711 1.1915
USDZAR 13.8955 14.0989
JPYNGN 2.7097 2.8103