12 January 2017, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: Nigeria will look to issue a debut diaspora bond by March to raise funds from Nigerians abroad, after completing a $1 billion Eurobond sale this month, a finance ministry source told Reuters on Wednesday. It first announced plans to sell diaspora bonds in 2013 to raise between $100 million to $300 million, but the government at the time could not finish appointing book runners for the sale before an election that swept the opposition into office. The government plans to borrow up to $10 billion, with about half of that coming from foreign sources as it seeks to boost overseas loans to plug funding gaps and lower costs.
FX: The Naira weakened yet again relative to the dollar falling to $/ NGN 493 on the offer as the shortage of the greenback continues. Momentum remained unchanged during Wednesday’s trading session with NGN reported to a high of $/NGN 326.00.
FIXED INCOME: Money market liquidity opened N17bn long. Demand crept back into the bill market on the back of this. In bonds, the selling was slower than Tuesday but there also seemed to be a few buyers yesterday. Trading activities in bonds remain stirred by where different players think the auction will print. O/N closed at 12%.
TURKEY: Turkish president Recep Tayyip Erdogan’s attempts to take control of all levers of power and a mounting terrorist threat have begun to alarm investors, sending the Turkish lira down 4 percent to a new low yesterday. The lira traded at 3.93 to the dollar, down 12 percent since the beginning of January, clocking its worst performance since a failed coup in July which prompted a purge, including business leaders and more than 100,000 civil servants. With dwindling reserves, analysts believe the only solution is an increase in official interest rates by the central bank. But Mr Erdogan has denounced high rates as a brake on growth and has demanded lower rates to jump-start an economy that has, in effect, stalled.
US: The dollar pared early gains and Wall Street struggled to maintain its initial upward momentum as participants digested comments from Donald Trump, the US president-elect, at his first press conference since the election. Healthcare stocks were early casualties after Mr Trump criticised the industry and said the government would negotiate more aggressively on the price it pays for drugs. The Dow Jones Industrial Average, which had risen to within 27 points of the 20,000 milestone earlier in the session, was up just 35 points at 19,890. The dollar index, which measures the US unit against a basket of peers, was up 0.4 % at 102.38, after earlier reaching 102.95 — not far from last week’s 14-year high of 103.82.
COMMODITIES: Oil prices dipped on Thursday on the back of rising U.S. crude inventories and plentiful supplies, despite emerging output cuts from OPEC and other producers. U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were trading at $52.18 a barrel at 0141 GMT, down 7 cents from their last settlement. Prices for Brent crude futures LCOc1, the international benchmark for oil prices, were at $55.06 a barrel, down 4 cents. Outside the United States, emerging detail of Saudi supply cuts as parts of efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers like Russia to curb the global supply glut started to emerge.
Macro Economic Indicators
Inflation rate (Y-o-Y) for November 2016, 18.48%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Jan 10, 2017, 26,658
Money Market Highlights
NIBOR (%)
O/N 14.3750
30 Day 16.7359
90 Day 18.4988
180 Day 22.2534
LIBOR (%)
USD 1 Month 0.76500
USD 2 Months 0.83167
USD 3 Months 1.01789
USD 6 Months 1.33378
USD 12 Months 1.06675
Benchmark yields
Tenor Maturity Yield (%)
91d 13-Apr-17 14.45
182d 13-Jul-17 18.82
364d 21-Dec-17 21.67
2y 29-Jun-19 16.36
3y 13-Feb-20 16.38
5y 27-Jan-22 16.16
Indicative Currency Exchange Rates
Bid Offer
USDNGN 314.50 315.00
EURUSD 1.0534 1.0736
GBPUSD 1.2155 1.2357
USDJPY 114.39 114.42
USDCHF 1.00485 1.0150
GBPEUR 1.1423 1.1627
USDZAR 13.4974 13.7008
JPYNGN 2.7097 2.8103
CHFNGN 312.74 314.39
EURNGN 338.92 340.28
GBPNGN 404.78 406.18