16 January 2017, Sweetcrude, Houston — A local and international financial products and services update.
NIGERIA: The National Bureau of Statistics (NBS), on Friday released the Consumer Price Index (CPI) for the month of December, showing that despite the festivities associated with the period, inflation increased by 18.55% year-on-year, up by 0.07% the level from 18.48% in November. The highest price increases were seen in Housing, Water, Electricity, Gas and Other Fuels, Clothing and Footwear and Education, which grew by 27.27%, 21.62% and 17.84% respectively. The Food Index rose by 17.39% year-on-year in December 2016, up by 0.20% from the 17.19% recorded in November, with all major food sub-indexes increasing. The soft drinks recorded the slowest pace of increase at 7.66% year on year.
FX: Nigerian retail FX Bureaus will publish a weekly reference rate, this week and next week BDCs have set their quotes at NGN 399.00 to purchase the greenback. The naira was reported losing 7 big figures to $/NGN 497 this week into the parallel market as it’s yet to see Central Bank’s actions.
FIXED INCOME: The Bond market was skewed to the buyers particularly on the March 2036s. The bills, on the other hand, saw some selling because of the OMO announcement. With the surprising ‘no sale’ at the OMO auction, we expect demand to come back into bills. For bonds, focus this week will be on auction prints.
UK: The pound has fallen below the $1.20 mark for the first time since the October “flash crash”, ahead of a speech on Tuesday when UK prime minister Theresa May is expected to signal that Britain will fully break out of the EU’s common market after Brexit. The UK currency fell as much as 1.6 % to a low of $1.1986 against the dollar in early Asian trading in an unusually wide gap from Friday’s New York close at $1.2175. The pound also opened sharply lower against the euro, with the single currency jumping 1.1 % to a nine-week high at £0.88462 from a Friday close at £0.8721.
US: Inflation-adjusted yields on U.S. government bonds have tumbled over the past month, the latest sign of moderating market expectations for the Trump administration’s economic plan. So-called real yields, which subtract inflation readings from the 10-year U.S. Treasury note’s yield, have dropped to a recent 0.38% from 0.74% at their mid-December postelection peak. Real yields tend to rise with a strengthening economy, so the surge following Donald Trump’s Nov. 8 election signalled a global expansion of economic activity was under way. The yield decline and a recent pullback in the U.S. dollar’s value suggest that investors are reassessing their initial enthusiasm for the so-called Trump trade, in which expectations of higher growth and inflation fuelled sharp gains in U.S. stock indexes, the dollar and the prices of many commodities.
COMMODITIES: Oil prices inched up on Monday, supported by a weaker dollar and expectations that OPEC and other producers will cut output as part of a deal to curb global oversupply. Brent crude futures LCOc1, the international benchmark for oil prices, were trading at $55.64 per barrel at 0344 GMT (10:44 p.m. ET), up 19 cents from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 17 cents at $52.54 a barrel. Oil also continued to receive support from an announced crude output cut from major producers including the Organization of the Petroleum Exporting Countries (OPEC) and Russia.
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 11, 2017, 26,876
Money Market Highlights
NIBOR (%)
O/N 9.0833
30 Day 16.3420
90 Day 17.9116
180 Day 21.9988
LIBOR (%)
USD 1 Month 0.76833
USD 2 Months 0.83500
USD 3 Months 1.02317
USD 6 Months 1.33156
USD 12 Months 1.06675
Benchmark Yields
Tenor Maturity Yield (%)
91d 13-Apr-17 14.10
182d 13-Jul-17 18.92
364d 21-Dec-17 21.69
2y 29-Jun-19 16.37
3y 13-Feb-20 16.41
5y 27-Jan-22 16.11
Indicative Currency Exchange Rates
Bid Offer
USDNGN 314.50 315.00
EURUSD 1.0520 1.0722
GBPUSD 1.1934 1.2136
USDJPY 113.83 113.86
USDCHF 1.01005 1.0202
GBPEUR 1.1229 1.1433
USDZAR 13.4542 13.6576
JPYNGN 2.6497 2.7503
CHFNGN 312.74 314.39
EURNGN 338.92 340.28
GBPNGN 404.78 406.18