29 June 2017, Sweetcrude, Houston — The local and international financial market products and services update.
NIGERIA: The Central Bank of Nigeria (CBN) Wednesday intervened in various segments of the inter-bank market to the tune of $195 million.
A breakdown of the intervention revealed that authorized dealers in the wholesale window segment received a $100 million offer from the bank, while the Small and Medium Enterprises (SMEs) and Invisibles windows were allocated the sums of $50 million and $45 million respectively.
The bank’s acting Director, Corporate Communications Department, Mr. Isaac Okorafor, confirmed the figures and disclosed that the bank was impressed by the high level of transparency exhibited by stakeholders in the market.
With the rate of inflation dropping from its April 2017 figure of 17.24% to 16.25% at the end of May 2017, the CBN spokesman said the bank remained upbeat that the fortunes of the naira would improve further in the months to come.
FX: The week kicked off with naira being supported by CB wholesale auction, $100m was offered for tenor not exceeding 60 days. Last week the Apex Bank sold $340m through retail and wholesale auctions raising the total amount sold since February 21, 2017, to $6.38bn based on wire reports.
FIXED INCOME: Very quiet day in bonds yesterday though some slight sales to close. Bill market, on the other hand, opened the week with buyers. Most of the demand was on the illiquid July bills (down 200bps on average). OMO print came out marginally lower on the 358day bill. This does not seem to be giving street much cause for concern. O/N closed at 10%. N53.8bn in total was sold at the OMO auction – N1.8bn at 19.71% yield and N52.03bn at 22.74% yield.
U.K.: Don’t expect a quiet summer break. The stage is set for an exciting Bank of England meeting in August.
Just one week after he said it’s not yet time to increase interest rates, Governor Mark Carney on Wednesday shifted his emphasis, saying that policy makers may need to begin raising them and will debate it in the coming months.
His comments come after a fortnight of speculation over the outlook for policy tightening, sparked by dissenting calls for a hike by three of eight policy makers at their June meeting and a fourth subsequently suggesting he might follow suit.
U.S: The Trump administration will put its new travel restrictions on refugees and migrants from six countries into effect at 8 p.m. Eastern time on Thursday, according to a person familiar with the matter.
The rollout of the executive order, which follows a U.S. Supreme Court decision Monday allowing parts of the order to proceed, is being led by the State Department. The timing is aimed at giving embassies and consulates worldwide sufficient direction on how to carry out the order before it goes into effect, according to the person, who asked not to be identified because the move hasn’t been formally announced.
COMMODITIES: Oil held gains as U.S. crude production tumbled the most in almost a year, easing pressure on OPEC-led efforts to drain a global glut.
Futures rose 0.5% in New York after advancing 5.2% in the previous five sessions. U.S. production tumbled by 100,000 barrels a day last week, the most since early July, the Energy Information Administration said Wednesday. The decline was likely driven by field maintenance in Alaska and the impact of tropical storm Cindy. Crude stockpiles unexpectedly expanded while gasoline inventories fell a second week.
Macro Economic Indicators
Inflation rate (Y-o-Y) for May 2017 16.25%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at June 23, 2017, 30.227
Money Market Highlights
30 Day 19.4204
90 Day 21.4237
180 Day 23.7049
USD 1 Month 1.22378
USD 2 Months 1.25222
USD 3 Months 1.29506
USD 6 Months 1.44683
Tenor Maturity Yield (%)
91d 28-Sep-17 19.55
182d 28-Dec-17 20.55
364d 14-Jun-18 22.44
2y 29-Jun-19 16.51
3y 14-Jun-20 16.35
5y 27-Jan-22 16.17
Indicative Currency Exchange Rates
USDNGN 314.50 315.00
EURUSD 1.1323 1.1525
GBPUSD 1.2886 1.3088
USDJPY 112.36 111.98
GBPEUR 1.1262 1.1468
USDZAR 12.8518 13.0551
EURNGN 359.53 360.89
GBPNGN 408.74 410.14