27 April 2017, Sweetcrude, Houston — The local and international financial market products and services update.
NIGERIA: Following last Tuesday’s assurances by the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, that the CBN would continue to intervene in the foreign exchange market, the bank Wednesday auctioned the sum of $185.86 million through retail Secondary Market Intervention Sales (SMIS).
This is just as the CBN yesterday settled the 10th Over-the-Counter (OTC) foreign exchange (FX) Futures Contract valued at $965.29 million which matured on the FMDQ OTC Securities Exchange. The FMDQ revealed this on its website.
FX: Wires have it that the CBN sold about $25m to the Investors and Exporters market with the rate tracking the NAFEX fixing. The Investors / Exporters rate opened slightly higher at $/NGN 379.89 today.
FIXED INCOME: Yesterday was another subdued day. Formal addition of the Mar 2027s to bond runs did not even excite the market. Tone was generally weak with small sales causing decent price adjustments downwards. Bond market seems to be on the edge while awaiting their fate on the much awaited and talked about maturity. Bill market on the other hand only seeing local interest on the short dates.
E.U.: Euro-area economic confidence jumped to the highest in almost a decade this month, a testament to a continued improvement that may soon prompt a policy shift at the European Central Bank.
The index of executive and consumer sentiment surged to 109.6 in April from a revised 108 in March, the European Commission in Brussels said on Thursday. That’s the strongest since August 2007 and compares with a median estimate of 108.2 in a Bloomberg survey of economists.
The report may sway the ECB Governing Council’s assessment of the 19-nation economy as it prepares to announce its policy decision later on Thursday. While no changes to interest rates or asset purchases are expected, most respondents in a Bloomberg survey say an improved outlook will allow President Mario Draghi to revise forward guidance as early as June, sooner than previously anticipated.
JAPAN: The Bank of Japan kept its stimulus policies unchanged while lowering its inflation forecast, underscoring that any exit from its unprecedented monetary easing remains far away.
The central bank will continue to use its two policy rates and asset purchases to spur prices higher, it said in a statement Thursday. The decision was expected by almost all economists surveyed by Bloomberg. The BOJ made a small increase to its growth forecasts for this fiscal year and next.
COMMODITIES: The energy ministers of OPEC members Saudi Arabia and Venezuela plan to meet their Russian counterpart to discuss extending oil-output cuts amid a developing consensus that they should prolong their joint effort to curb supply.
Saudi Minister of Energy and Industry Khalid Al-Falih said that he will talk with Russia’s Alexander Novak by phone this week and meet him within the next two weeks. Venezuela’s Oil Minister Nelson Martinez was also planning to visit Moscow after talks in Algeria on Wednesday, said a person familiar with the matter.
Macro Economic Indicators
Inflation rate (Y-o-Y) for March 2017 17.26%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Apr 25, 2017 30.762
Money Market Highlights
NIBOR (%)
O/N 26.7500
30 Day 18.4252
90 Day 21.3772
180 Day 23.1787
LIBOR (%)
USD 1 Month 0.99222
USD 2 Months 1.04056
USD 3 Months 1.17039
USD 6 Months 1.42361
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 27-Jul-17 18.55
182d 26-Oct-17 20.22
364d 05-Apr-18 22.20
2y 12-Apr-19 17.00
3y 13-Feb-20 16.12
5y 27-Jan-22 16.02
Indicative Currency Exchange Rates
Bid Offer
USDNGN 330.00 331.00
EURUSD 1.0794 1.0997
GBPUSD 1.2798 1.3000
USDJPY 111.27 111.30
USDCHF 0.98865 0.9987
GBPEUR 1.1737 1.1940
USDZAR 13.1670 13.3705
JPYNGN 2.6997 2.8003
CHFNGN 307.03 308.72