23 December 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The level of investment inflow into the country recorded a huge decline of $4.51bn from the $8.08bn in the first nine months of 2015 to $3.57bn in the same period of 2016, an analysis of the capital importation report obtained from the National Bureau of Statistics revealed. It stated that while there were a number of reasons why the amount of capital imported in recent years had been higher than usual, the drop between last year and this year suggested that there were further reasons why Nigeria had attracted less foreign investments in recent quarters.
FX: Trading remains muted outside of the daily participation of the CB. The range yesterday was $/NGN 304.75- 305.25. The CBN started communicating to banks the results of the SIMS intervention late last night.
FIXED INCOME: Yesterday’s bill auction was undersubscribed. N39.72bn was sold vs. N83.24bn offered. The street is shying away from holding paper until the results of the FX intervention is released. The result is important to establish how much liquidity will be left in the money market. This is equally the cause of the weak interest at the OMO auction. With the credit of FAAC allocations, interest is skewed to short-dated bills till this result is released.
U.S.: Consumer spending in the U.S. rose less than forecast in November as after-tax incomes adjusted for inflation declined for the first time since October 2013. Purchases increased 0.2% after rising a revised 0.4% in October, Commerce Department figures showed Thursday. The median forecast in a Bloomberg survey called for a 0.3% advance. Real disposable income, or the money remaining after taxes, decreased 0.1%, reflecting a decrease in wages. The report corroborates lacklustre retail sales data earlier this month, indicating household consumption is probably cooling in the fourth quarter. The report also showed nominal income was little changed after accelerating in October.
U.K.: The head of the Commons Treasury committee has said he will defend the Bank of England against “undue pressure” from the government but warned Mark Carney, its governor, not to try the patience of politicians by straying outside his brief. Andrew Tyrie, the Conservative MP who heads the committee, announced on Thursday that MPs would hold an inquiry next year into the effectiveness and impact of the BoE’s monetary policy — including the quantitative easing program — and the issue of political interference. The BoE’s independence has come under intense scrutiny since the Brexit referendum, with Theresa May, the prime minister, among those to challenge the bank’s ultra-low interest rate policies.
COMMODITIES: Oil prices slipped on Friday in thin Asian trade ahead of the Christmas and New Year holidays, wiping out some of the gains in the previous session as traders took profits. A strong US dollar also weighed on sentiment. US West Texas Intermediate crude fell 31 US cents to US$52.64 a barrel as of 0127 GMT after settling 46 US cents, or 0.9%, up in the previous session. Brent futures for February delivery dropped 30 US cents to US$54.75 a barrel after ending the previous session up 59 US cents, or 1.1%.
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 20,2016, 25.248
Money Market Highlights
NIBOR (%)
O/N 04.5417
30 Day 17.0866
90 Day 19.0031
180 Day 23.0363
LIBOR (%)
USD 1 Month 0.75500
USD 2 Months 0.81139
USD 3 Months 0.99761
USD 6 Months 1.31600
USD 12 Months 1.06675
Benchmark Yields
Tenor Maturity Yield (%)
91d 23-Mar-17 14.37
182d 15-Jun-17 19.02
364d 02-Nov-17 21.43
2y 30-May-18 19.17
3y 29-Jun-19 15.77
5y 15-Jul-21 15.94
Indicative Currency Exchange Rates
Bid Offer
USDNGN 314.42 316.07
EURUSD 1.0344 1.0546
GBPUSD 1.2154 1.2356
USDJPY 117.36 117.39
USDCHF 1.02185 1.0320
GBPEUR 1.1631 1.1835
USDZAR 13.8938 14.0972
JPYNGN 2.6397 2.7403
CHFNGN 312.74 314.39
EURNGN 338.92 340.28
GBPNGN 404.78 406.18