22 December 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The Senior Special Assistant to the President on Foreign Affairs and Diaspora Matters, Mrs. Abike Dabiri-Erewa, on Tuesday said between January and now, over $35bn had been remitted to the country by Nigerians living abroad. She said the amount so far remitted to the country by Nigerians living abroad this year exceeded the $21bn sent home by them last year. Dabiri-Erewa drew the attention of the FIRS management to tax concerns raised by Nigerians living abroad, adding that this might frustrate the objective of the government in encouraging them to invest back home.
FX: As expected, prices of the contracts in the futures market moved and a new contract has been introduced for the 12-month tenor “NGUS DEC 27 2017”.Contracts across the curve gained 11.2 points by average.
FIXED INCOME: Results of the FX intervention will determine how much more cash will leave the money market. Bill market continued Monday’s sell-off as street positions for this outflow. Appetite at the OMO has dropped once again also because of the expected outflow – only N17.92bn was mopped up across the two tenors offered (stop rates unchanged). On the other hand, in bonds, there was modest buying on the long end of the curve before some profit taking towards a close. Buying appears to have been dominated by real money accounts. The last bill auction for the year is holding today.
U.S.: The Obama administration said it would indefinitely block oil and gas natural drilling in vast swaths of the Arctic Ocean and smaller parts of the Atlantic ocean, the latest in a string of last-minute actions in the face of president-elect Donald Trump’s vows to undo President Barack Obama’s environmental agenda. The announcement carries symbolic significance but little immediate impact., since no commercial drilling is currently taking place in US federal water of either the Atlantic off the East coast off the Arctic north of Alaska. Persistently low oil prices have depressed the oil industry’s appetite to make big investments in new offshore projects, and any production would take the better part of a decade to come online.
JAPAN: Japan will sell fewer bonds for a fourth year and sale of 10-year notes will decline for the first time since fiscal 1998, as investor demand shrinks after unprecedented easing pushed yields below zero on more than half of the nation’s securities.
Investors including banks and life insurers will be offered 141.2 trillion yen ($1.2 trillion) of government notes in the year starting April 1, down from 147 trillion yen in the initial plan for the current fiscal period, the Ministry of Finance said. The government plans to cut issuance of securities maturing from one to 20 years, keep the sale of 30-year bonds unchanged, and step up issuance of the longest-dated, highest-yielding, 40-year debt. It also plans to boost liquidity-enhancing auctions to ensure bond availability.
COMMODITIES: Oil prices nudged higher in tepid Asian trading on Thursday, supported by a weaker dollar and optimism that crude producers would abide by an agreement to curb output to prop up markets. But gains were capped by an unexpected rise in U.S. crude inventories last week and as Libya said it expected to boost output over the next few months.
Brent LCOc1 futures for February delivery climbed 18 cents to $54.64 a barrel as of 0423 GMT, having previously finished 89 cents lower.
U.S. West Texas Intermediate crude rose 15 cents to $52.64 a barrel, after closing the previous session down 81 cents.
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 19,2016, 25.187
Money Market Highlights
30 Day 16.4496
90 Day 18.7602
180 Day 21.5623
USD 1 Month 0.74900
USD 2 Months 0.81056
USD 3 Months 0.99622
USD 6 Months 1.32044
USD 12 Months 1.06675
Tenor Maturity Yield (%)
91d 23-Mar-17 14.34
182d 15-Jun-17 19.69
364d 02-Nov-17 21.40
2y 30-May-18 19.14
3y 29-Jun-19 15.76
5y 15-Jul-21 15.88
Indicative Currency Exchange Rates
USDNGN 314.50 315.00
EURUSD 1.0337 1.0539
GBPUSD 1.2262 1.2464
USDJPY 117.66 117.69
USDCHF 1.02115 1.0311
GBPEUR 1.1742 1.1945
USDZAR 13.8750 14.0760
JPYNGN 2.5267 2.6703
CHFNGN 312.74 314.39
EURNGN 338.92 340.28
GBPNGN 404.78 406.18