30 December 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The Naira is one of the world’s four worst performing currencies in 2016, according to a report by Bloomberg LP.
The Naira was said to have lost 36.68% of its spot returns for the year, while the Egyptian pound, Suriname dollar and Venezuela bolivar’s currency spot returns dropped by 58.84%, 46.68% and 37%, respectively, for the period.
The Nigerian equity market fared worst in the year, according to the report, as the nation’s economy is set to contract in 2016 for the first time in more than 20 years as capital controls deter foreigners from investing and militants are blowing up pipelines.
FX: The momentum for USDNGN remains same as we approach the end of the year. The CB sold an estimate of $1.5m yesterday and market range yesterday was $/NGN 304.75 – 305.25.
FIXED INCOME: With an OMO maturity of N134bn, CBN resumed the OMO sales. Short dated bills sold off because of the announcement. N70.76bn was eventually mopped up across the two tenor tenors offered (19.93% on the 196day and 22.74% yield on 357day bill). In bonds, it was a slightly weak start yesterday before the intermittent buying. Ahead of the New Year holidays, we expect tepid trading session today.
CHINA: China’s central bank said it tightened requirements for lenders to report cross-border transactions by customers as part of stepped-up efforts to curb money laundering.
The People’s Bank of China will require financial institutions to report any cross-border transfers of 200,000 Yuan ($28,800) or more starting July 1, it said in a statement Friday.
The PBOC said its Anti-Money Laundering Monitoring and Analysis Centre also must be notified of any domestic cash deposits, withdrawals or transfers of 50,000 Yuan or more or when banks have reason to believe that smaller transactions may be suspicious. That requirement has been brought down from the existing 200,000 Yuan limit and may be adjusted if needed.
U.S: The U.S. retaliated against Russia for meddling in the presidential election, imposing sanctions against intelligence officials and expelling 35 Russian operatives. The FBI and Homeland Security Department released a report with evidence linking cyber attacks to Vladimir Putin’s military and civilian services. The punitive steps follow repeated warnings, President Obama said, ignoring Donald Trump’s suggestion that the country move on rather than take action. Russia said it plans to announce countermeasures today.
Trump has brushed aside allegations from the CIA and other intelligence agencies that Russia was behind the cyber attacks. He said on Thursday he would meet with intelligence officials soon.
COMMODITIES: Oil headed for its first annual advance in three years before supply cuts from OPEC and other producing nations next month intended to stabilise the market and reduce swelling global inventories.
Futures added 0.4% New York after losing 0.5% on Thursday, snapping an eight-day winning streak, as U.S. crude inventories unexpectedly expanded a second week. Stockpiles climbed by 614,000 barrels last week, the smallest gain since January, the Energy Information Administration reported Thursday.
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 28,2016, 25.720
Money Market Highlights
30 Day 17.8455
90 Day 19.3360
180 Day 22.6437
USD 1 Month 0.77000
USD 2 Months 0.81611
USD 3 Months 0.99817
USD 6 Months 1.31767
USD 12 Months 1.06675
Tenor Maturity Yield (%)
91d 30-Mar-17 12.44
182d 29-Jun-17 19.13
364d 02-Nov-17 21.44
2y 30-May-18 19.23
3y 29-Jun-19 15.87
5y 15-Jul-21 15.99
Indicative Currency Exchange rates
USDNGN 314.50 315.00
EURUSD 1.0461 1.0663
GBPUSD 1.2204 1.2405
USDJPY 116.97 117.00
USDCHF 1.01115 1.0212
GBPEUR 1.1546 1.1751
USDZAR 13.6202 13.8238
JPYNGN 2.6397 2.7403
CHFNGN 312.74 314.39
EURNGN 338.92 340.28
GBPNGN 404.78 406.18