06 June 2017, Sweetcrude, Houston — The local and international final market products and services update.
NIGERIA: Nigeria’s President Muhammadu Buhari is expected to fly home from London and arrive back in the country on Saturday, two presidency sources said, ending his second long break for medical leave in Britain this year.
Buhari left Abuja on May 7 and handed over power to his deputy, Yemi Osinbajo, seeking to allay concerns of a void at the helm of Africa’s biggest economy.
The president, 74, traveled to Britain last month for what his office described as medical tests. Officials have refused to disclose details of his medical condition. His first absence began in January and lasted nearly two months.
His wife Aisha Buhari, in a statement issued by State House, expressed appreciation for the support of Nigerians and said “he will soon be with them as he is recuperating fast
FX: The week kicked off with CBN offering $100m spot and forwards for tenors not exceeding 60-days. Also, banks were allocated the usual weekly SME and invisible funds for an estimated amount of $100m, this figure was derived based on past sales. Regulators are looking to improve transparency and liquidity in the I&E window.
FIXED INCOME: Fixed Income market opened the week on a subtle note, there wasn’t much interest from market players and clients, and this made market feels a bit stale. Sentiments are still positive for both t-bills and bonds because of less money market liquidity pressure from CBN, but traded volumes are still very low. CBN issued more OMO bills yesterday, the apex bank sold 300m 14dec17 and 9.9bn 17May18 bills. The stop rate for the 14dec17 bill dropped slightly to 17.90% discount. We think the market will remain like this until there’s a major shift in either direction.
U.K.: Conservative Prime Minister Theresa May will deploy Boris Johnson to the northeast of England in a bid to conquer Brexit-supporting Labour strongholds, even as the fallout from the London terror attacks continues to dominate the campaign.
Johnson, one of the faces of the Leave campaign, will say in a Tuesday speech that only May can “get Brexit right.” Labour will aim to shore up its support in working-class areas with a warning that May’s plans to cut winter heating support for the elderly will cause thousands of extra deaths.
CHINA.: China’s banking regulator is extending a June deadline for some banks to hand in reviews of their businesses, seeking to maintain stability in the financial industry as some lenders struggle to assess the scope of their exposures, according to people familiar with the matter.
Certain banks were given as long as three additional months to submit the reports required under guidelines issued by the China Banking Regulatory Commission in late March, said the people, asking not to be identified as the information is confidential. The reviews had uncovered complexities with some of the lenders’ exposures that they were trying to tidy up before submitting the reviews, they said. Shares of smaller banks rallied on Tuesday.
COMMODITIES: Oil held losses near the lowest close in more than three weeks before weekly U.S. government data on crude stockpiles and production.
Futures were little changed in New York after sliding 2% in the previous two sessions. U.S. inventories probably dropped by 3.5 million barrels last week, a ninth straight decline, according to a Bloomberg survey. Oil prices surged Monday amid a diplomatic clash involving OPEC members Saudi Arabia and Qatar, before closing 0.6% lower as the spat was seen having a limited impact on supply and as focus returned to the global glut.
Macro Economic Indicators
Inflation rate (Y-o-Y) for April 2017 17.24%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at June 02, 2017 30.282
Money Market Highlights
NIBOR (%)
O/N 12.5417
30 Day 20.0110
90 Day 22.1507
180 Day 24.2983
LIBOR (%)
USD 1 Month 1.08617
USD 2 Months 1.14306
USD 3 Months 1.22250
USD 6 Months 1.42822
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 07-Sep-17 19.49
182d 14-Dec-17 20.88
364d 10-May-18 22.21
2y 29-Jun-19 16.43
3y 17-May-20 16.33
5y 27-Jan-22 16.19
Indicative Currency Exchange Rates
Bid Offer
USDNGN 314.50 315.00
EURUSD 1.1148 1.1350
GBPUSD 1.2820 1.3022
USDJPY 109.64 109.67
GBPEUR 1.1388 1.1590
USDZAR 12.6597 12.8631
EURNGN 353.38 354.74
GBPNGN 406.09 407.49