14 August 2017, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: Nigeria’s President Muhammadu Buhari has said he feels ready to return home from medical leave in Britain, and is awaiting his doctor’s permission, a presidency statement said on Saturday. Buhari’s extended absence for an undisclosed ailment, his second this year, left many in Nigeria questioning whether he was well enough to run the country. The president has spent more time since the beginning of 2017 in Britain than in Nigeria. That has sparked numerous protests, including demands that Buhari should resign, as well as calls for more transparency about the president’s condition.
FX: Naira gained at the I&E window settling sub $/N 370 level to close last week. Market offers were seen between $/N 362 – 366 for decent sizes. Most of the flows were from offshore clients investing in both money market (t-bills) and stock market.
FIXED INCOME: T-Bills closed +28bps wide because dealers are trying to create liquidity. N43bn coupon payment comes in this week but no major relief till Thursday. Bonds another +3bps with extra supply coming out again on the June 19s at 16.90% yield. T-Bill auction this week – the popular 1year won’t be on offer. O/N closed at 50%. N20.5bn was sold at Friday’s OMO.
U.K: The U.K. will this week seek to regain momentum in the Brexit talks by publishing outlines of its negotiating positions after two key ministers ended their disagreement over a post-European Union transition
The government plans to issue three discussion papers ahead of the next round of discussions, scheduled to start Aug. 28 in Brussels, Brexit Secretary David Davis’s office said in a statement on Sunday.
The documents — setting out proposals for Northern Ireland and the border with Ireland, continuity on the availability of goods, and confidentiality and access to official documents after Brexit — will seek to prove the U.K. is ready for talks to advance to the next stage, according to the statement.
U.S.: Tensions on the Korean peninsula eased slightly on Monday as South Korea’s president said resolving Pyongyang’s nuclear ambitions must be done peacefully and key U.S. officials played down the risk of an imminent war with North Korea.
Concern that North Korea is close to achieving its goal of putting the mainland United States within range of a nuclear weapon has underpinned a spike in tensions in recent months.
U.S. President Donald Trump warned at the weekend that the U.S. military was “locked and loaded” if North Korea acted unwisely after threatening last week to land missiles near the U.S. Pacific territory of Guam.
COMMODITIES: Oil traded near $49 a barrel as Libyan output and exports declined amid security threats and tension among port workers.
Futures fell 0.3% in New York after Friday’s 0.5% gain. Libya’s biggest oil field cut output by more than 30%, a person familiar with the matter said Sunday, while the head of a union said loadings at Zueitina port ceased after employees demanded better working conditions. U.S. drillers added three crude rigs last week, according to Baker Hughes Inc.
Macro Economic Indicators
Inflation rate (Y-o-Y) for June 2017 16.10%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at August 08, 2017, 31.222
Money Market Highlights
30 Day 19.0413
90 Day 22.0993
180 Day 23.5388
USD 1 Month 1.22667
USD 2 Months 1.26111
USD 3 Months 1.31500
USD 6 Months 1.45583
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 16-Nov-17 19.76
182d 15-Feb-18 20.46
364d 02-Aug-18 22.34
2y 12-Jul-19 17.11
3y 12-Jul-20 16.43
5y 27-Jan-22 16.36
Indicative Currency Exchange rates
USDNGN 314.50 315.00
EURUSD 1.1700 1.1902
GBPUSD 1.2874 1.3076
USDJPY 109.66 109.20
GBPEUR 1.0941 1.1145
USDZAR 13.2293 13.4326
EURNGN 429.40 430.76
GBPNGN 472.31 473.70