13 June 2017, Sweetcrude, Houston — The local and international financial market products and services update.
NIGERIA: The naira has recorded further gain, closing at 365 per United States dollar in the parallel Market. The local currency closed at 365/dollar on Friday, after closing between 367/dollar and 368/dollar for most days of last week.
The local unit had closed at 371/dollar the previous week, after rising to 374/dollar from 382/dollar.
Currency analysts have said they expect the naira to be stable across the board in the near term on increased dollar supply to both the official interbank window and the parallel market.
According to Reuters, the Central Bank of Nigeria has been intervening on the official market to try to narrow the spread between the official interbank and parallel markets. The CBN has sold over $4bn since February, improving dollar supply and providing support for the naira.
FX: The main activity of last week was around the I&E window and the trend after the CBN eased rules around interbank trades in this window. Indicative closing level at the end of the week was down 1.39% from $/N 377.91 to $/N 373.28 (record closing low), fuelled by decent offers through the week.
FIXED INCOME: Very quiet day in bonds on Friday. Slight sales to close but actual bond volumes during trading hours were below average. Tone in the bill market is still predominantly bearish. O/N closed at 25% with money market short N252.58bn. N18bn mopped up via OMOs Friday.
U.K.: Inflation’s hold on the U.K. consumer is tightening and the economy is suffering as a result.
Consumer spending fell an annual 0.8% in May, the first decline since September 2013, according to IHS Markit and Visa. Separately, accountancy firm BDO said its U.K. business activity index weakened as services, the largest part of the economy, ground to a halt. Citing the impact of the weaker pound, it said services companies are seeing no growth in demand.
FRANCE.: President Emmanuel Macron expanded his control of French politics as voters put his party on track to a sweeping majority in the National Assembly in the first round of legislative elections, ousting establishment stalwarts in the process.
The new president’s year-old party, Republic on the Move, won 32.3% of the vote alongside its centrist ally MoDem, more than 13% points ahead of the Republicans’ group, according to the Interior Ministry’s final vote count. The first round was marked by a record-low turnout with less than half the registered voters casting a ballot. In an alliance with the centrist MoDem party, Macron’s group will have between 415 and 455 seats out of 577 in the lower house of parliament, according to projections by Ipsos.
COMMODITIES: Oil steadied after a third weekly loss on speculation that sustained drilling by U.S. producers will blunt efforts by OPEC and Russia to re-balance an oversupplied crude market.
Futures were little changed in New York after sliding 3.8% last week. Inventories are declining and reductions will accelerate in the next three to four months, Saudi Arabia’s Energy Minister Khalid Al-Falih said at a briefing in Kazakhstan with his Russian counterpart, Alexander Novak. Russia is committed to doing everything it can to balance the market, Novak said.
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 08, 2017 30.283
Money Market Highlights
30 Day 20.4506
90 Day 22.2759
180 Day 24.5009
USD 1 Month 1.12711
USD 2 Months 1.17278
USD 3 Months 1.23644
USD 6 Months 1.41683
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 07-Sep-17 19.77
182d 14-Dec-17 20.49
364d 24-May-18 22.51
2y 29-Jun-19 16.45
3y 17-May-20 16.95
5y 27-Jan-22 16.02
Indicative Currency Exchange Rates
USDNGN 314.50 315.00
EURUSD 1.1119 1.1320
GBPUSD 1.2798 1.2818
USDJPY 109.92 109.96
GBPEUR 1.1232 1.1436
USDZAR 12.7908 12.9946
EURNGN 352.39 353.76
GBPNGN 399.47 400.88