02 May 2017, Sweetcrude, Houston — The local and international financial market products and services update.
NIGERIA: The Minister of Finance, Mrs. Kemi Adeosun, said on Monday that the federal government has commenced payment into the Excess Crude Account (ECA), in line with efforts to rebuild fiscal buffers. Adeosun said for the first time since the administration took over, the federal government last month paid $87 million into the ECA.
“Even though things are difficult, we are saving. As you know, when we came in, we gave the Sovereign Wealth Fund (SWF) an extra $500 million and we are still going to do more. We cannot afford to waste because we don’t have money to waste,” Adeosun said while speaking at The Platform, a programme organised by Covenant Christian Centre in Lagos on Monday.
FX: Wires had reported that the CB sold an estimated $25mio in the I & E window. I & E closed at $/NGN 379.04 and NAFEX printed $/NGN 374.91 on Friday.
FIXED INCOME: Bill market was mostly quiet to end the week with some interest on the June bills. The bond market opened Friday on a stronger tone from Thursday with pockets of client demand. Bill auction this week Wednesday – on offer is N45.18bn of 91day, N23.43bn of 182day and N82bn of 364day. So far, the CBN has mopped up approx. N232bn last week via OMOs.
CHINA: China’s run of solid economic indicators proved little consolation for its shaky financial markets in April. The dichotomy stems from a shift in the leadership’s focus toward reducing leverage — one that’s set to determine whether growth joins asset prices in heading down.
Economists are practically unanimous in saying that reduced debt loads would be good for China’s longer-term health. The big unknown is whether officials can manage that without a dose of short-term pain. As UBS Group AG analysts put it in a note last week: if authorities’ initiatives are “not managed well, it could lead to a rise in credit events, excessive liquidity tightening, a faster-than-intended slowdown of credit growth, and greater market volatility.”
U.K: The U.K.’s decision to leave the European Union’s atomic regulator after Brexit will put the country’s nuclear industry at risk and may threaten power supplies, a cross-party group of lawmakers said.
Prime Minister Theresa May said Britain would leave the European Atomic Community as part of its departure from the EU. The body’s main function is to safeguard nuclear fuel, making sure it isn’t diverted to make weapons. Nuclear fuel suppliers and power plants also need certification from Euratom to buy material on the open market. While it will lose access to those services, the government said it wants to maintain close nuclear cooperation with the EU.
But the Business, Energy and Industrial Strategy committee in Parliament said any delay between leaving Euratom and adopting alternative arrangements will hurt nuclear trade and research and could even hurt power supplies.
COMMODITIES: OPEC is certain to extend cuts in oil output when its ministers meet later in May and will need to keep limiting production until as late as the end of 2018, a veteran market analyst said.
The reaction of global crude inventories to the cuts will determine how long the Organization of Petroleum Exporting Countries and allied producers stick with their policy of pumping less oil to counter a global glut, said Fereidun Fesharaki, the head of industry consultant FGE. Oil may drop to as low as $40 a barrel if U.S. stockpiles increase, he said Monday at the Middle East Petroleum and Gas Conference in Dubai.
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 26, 2017 30.801
Money Market Highlights
30 Day 17.7112
90 Day 21.2672
180 Day 23.0111
USD 1 Month 0.99500
USD 2 Months 1.03722
USD 3 Months 1.17233
USD 6 Months 1.42628
Tenor Maturity Yield (%)
91d 27-Jul-17 18.54
182d 26-Oct-17 20.19
364d 05-Apr-18 21.98
2y 12-Apr-19 16.99
3y 13-Feb-20 16.21
5y 27-Jan-22 16.02
Indicative Currency exchange Rates
USDNGN 330.00 331.00
EURUSD 1.0810 1.1012
GBPUSD 1.2774 1.2975
USDJPY 112.11 112.14
USDCHF 0.98975 0.9999
GBPEUR 1.1699 1.1903
USDZAR 13.1847 13.3881
JPYNGN 2.7597 2.8603
CHFNGN 315.90 317.59