20 December 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The Federal Government has secured $150m from the World Bank for the solid minerals sector support and economic diversification.
The Minister of Mines and Steel Development, Dr. Kayode Fayemi, disclosed this while briefing the press in Abuja on Monday on the activities of the ministry in 2016.
He also said that the ministry was seeking to raise $600m investment fund for the sector in alliance with the Nigerian Stock Exchange and the Nigerian Sovereign Investment Authority.
According to the minister, the World Bank fund will be used to provide technical assistance for the restructuring of the Mining Investment Fund
FX: The CB today held another major FX forward auction for the 3rd time this year. Tenor between 2- 5months. December OTC Futures contract is expected to mature tomorrow.
FIXED INCOME: Majorly bearish tone yesterday set by the announcement of the FX intervention and later combined with the OMO auction which eventually took out liquidity from the system, bill market sold off. Most of the impact was on the short-dated bills as is usually the case. O/N rates moved up to 10% (from 6% to close last week) because of this pressure on money market liquidity. The Bond market also saw some profit taking on the compressed Mar 2024s. FAAC inflows expected later in the week.
U.S.: Republican Donald Trump prevailed in U.S. Electoral College voting on Monday to officially win election as the next president, easily dashing a long-shot push by a small movement of detractors to try to block him from gaining the White House.
Trump, who is set to take office on Jan. 20, garnered more than the 270 electoral votes required to win, even as at least half a dozen U.S. electors broke with tradition to vote against their own state’s directives, the largest number of “faithless electors” seen in more than a century.
The Electoral College vote is normally a formality but took on extra prominence this year after a group of Democratic activists sought to persuade Republicans to cross lines and vote for Democratic nominee Hillary Clinton.
JAPAN: The Bank of Japan closed a tumultuous year for the monetary policy with an upgrade to its assessment of the economy while keeping its yield-curve and asset-purchase programs unchanged.
Following the board’s first policy meeting since Donald Trump’s election victory, the central bank forecast a moderate recovery trend to continue amid a pickup in exports, better business sentiment and resilience in private consumption. However, inflation expectations remain weak and risks to the outlook abound, ranging from developments in the Chinese and U.S. economies to Brexit and geopolitical uncertainties.
COMMODITIES: Oil traded near $52 a barrel before government data forecast to show U.S. crude stockpiles fell for a fifth week, trimming an inventory glut.
Futures slid 0.3% in New York after rising 2.4% over the previous two sessions. Stockpiles probably dropped by 2.5 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report on Wednesday. BP Plc is spending more than $3 billion adding assets and Chief Executive Officer Bob Dudley says the worst is over for the company.
Macro Economic Indicators
Inflation rate (Y-o-Y) for November 2016, 18.48%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Dec 15,2016, 25.043
Money Market Highlights
30 Day 15.6885
90 Day 18.2002
180 Day 21.4277
USD 1 Month 0.73900
USD 2 Months 0.80944
USD 3 Months 0.99733
USD 6 Months 1.31989
USD 12 Months 1.06675
Tenor Maturity Yield (%)
91d 16-Mar-17 16.05
182d 15-Jun-17 19.63
364d 02-Nov-17 21.81
2y 30-May-18 19.39
3y 29-Jun-19 15.79
5y 15-Jul-21 15.88
Indicative Currency Exchange Rates
USDNGN 314.50 315.00
EURUSD 1.0286 1.0487
GBPUSD 1.2283 1.2484
USDJPY 118.04 118.09
USDCHF 1.02375 1.0339
GBPEUR 1.1817 1.2022
USDZAR 14.0529 14.2567
JPYNGN 2.6097 2.7103
CHFNGN 312.74 314.39
EURNGN 338.92 340.28
GBPNGN 404.78 406.18