21 July 2017, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: The aggregate foreign exchange (forex) inflow into the Nigerian economy in the first quarter of 2017 has been estimated at US$15 billion.
This, however, represented a decline of 9.2% below the level in the fourth quarter of 2016 but showed an increase of 1.4% over the level at the end of
the corresponding period of 2016.
The Central Bank of Nigeria (CBN) disclosed this in its first quarter 2017 economic report that was posted on its website.
It explained that the development was driven by the fall in receipts from both the central bank and autonomous sources. Oil sector receipts, which accounted for 15.9% of the total, stood at US$2.38 billion, compared with US$1.97 billion and US$2.48 billion, recorded in the fourth quarter of 2016 and the corresponding period of 2016, respectively.
FX: Yesterday, the bids were still in play and we saw a range on the day of $/N 366 – 379.00. Today’s data should give some more insight on the current appetite in the window. We are also yet to see any call by the CBN for Retail SMIS Intervention.
FIXED INCOME: Sizeable interest at yesterday’s late OMO auction because of ample liquidity. N127bn of the 364 day bill was sold at 22.76% yield. Short dated bills also remained well bid dropping c.100bps as street invested excess cash. Any announcement of FX retail auction or a special OMO today will change the existing tone in the bill market. Bond market saw some buyers on the short end but remains on the edge in the absence of steady demand.
U.K: British exporters are unprepared for leaving the European Union, according to a survey published Friday.
Almost half have yet to review their strategies more than a year after the Brexit vote, despite the EU being a trading partner for 85% of exporters, the YouGov Plc poll for Lloyds Bank found. Firms will almost certainly face more restricted access to the bloc when Britain leaves in March 2019.
“It’s concerning,” said Clive Higglesden, head of trade at Lloyds Bank Global Transaction Banking. “Wait-and-see is not really an adequate strategy for exporters, and businesses should be acting now to manage any risks on the horizon and possibly explore new opportunities.”
E.U.: The International Monetary Fund agreed to a new conditional bailout for Greece, ending two years of speculation on whether it would join in another rescue and giving the seal of approval demanded by many of the country’s euro-area creditors.
The Washington-based fund said Thursday its executive board approved “in principle” a new loan worth as much as $1.8 billion. The disbursement of funds is contingent on euro-zone countries providing debt relief to Greece.
IMF officials estimate that, even if Greece carries out promised reforms, the nation’s debt will reach about 150% of the gross domestic product by 2030, and become “explosive” beyond that point. European creditors could bring the debt under control by extending grace periods, lengthening the maturity of the debt or deferring interest payments.
Macro Economic Indicators
Inflation rate (Y-o-Y) for June 2017 16.10%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at July 11, 2017, 30.362
Money Market Highlights
30 Day 18.2160
90 Day 19.8502
180 Day 23.0566
USD 1 Month 1.22889
USD 2 Months 1.25722
USD 3 Months 1.30722
USD 6 Months 1.45322
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 19-Oct-17 14.49
182d 18-Jan-18 19.80
364d 05-Jul-18 22.31
2y 12-Jul-19 16.80
3y 14-Jun-20 16.46
5y 27-Jan-22 16.14
Indicative Currency Exchange Rates
USDNGN 314.50 315.00
EURUSD 1.1460 1.1745
GBPUSD 1.2895 1.3097
USDJPY 111.75 111.76
GBPEUR 1.1059 1.1263
USDZAR 12.8780 13.0814
EURNGN 365.82 367.19
GBPNGN 408.34 410.09