16 January 2018, Sweetcrude, Houston, Texas — The local and international financial market products and services update.
NIGERIA: Nigeria’s central bank said on Monday that it had injected $210 million into the interbank foreign exchange market as part of its attempt to boost liquidity and alleviate dollar shortages. The bank said in a statement it had released $100 million earmarked for the wholesale market, $55 million for small businesses, and $55 million for certain dollar expenses such as school fees and medical bills. The bank, in an emailed statement, said it would continue to intervene in the foreign exchange market to sustain liquidity.
FX: The I&E window kicked off the week on th the same pattern as market remains offered. Range seen on the day was between $/N 359 – 360.50. The daily average turnover last week was $295.50m and the highest level traded stood at $/N 362 for last week.
FIXED INCOME: Mostly quiet yesterday particularly in bonds. Spreads were generally wider but not a lot of volumes going through.
Demand at the OMO was reflective of money market conditions with most of the cash mopped up. December inflation prints expected today and Treasury bill auction tomorrow.
U.K: The U.K. economy isn’t going to pick up for at least the next two years as consumers struggle to lift spending.
Respondents to Bloomberg’s first U.K. survey of 2018 showed few signs of new year optimism. The median forecast for growth this year was kept at 1.4%, and no acceleration is seen in 2019. While gross domestic product probably gained 1.6% in 2017, more than previously estimated, that’s still the slowest in five years.
The economy started cooling last year as accelerating inflation fueled by the pound’s post-Brexit vote slump squeezed consumers.
CHINA: Chinese leader Xi Jinping told U.S. President Donald Trump that the two sides must work together to find solutions to trade and economic disputes, state media reported.
The two leaders spoke at Trump’s request, the state-run China Central Television said Tuesday. The Chinese president urged both sides to take a “constructive approach” and work “properly” to settle disputes and open up each other’s markets, CCTV said.
After criticizing China during the 2016 presidential campaign, Trump repeatedly praised Xi during his first year in office and the pair has had frequent conversations.
COMMODITIES: As oil rallies and hedge funds increase their bullish bets on crude to the highest in more than a decade, some indicators signal futures may face hurdles to advance further.
While futures in New York were up 0.3%, their 14-day Relative Strength Index shows they have been in overbought territory since the beginning of last week. West Texas Intermediate as well as London’s Brent crude are approaching the 50% Fibonacci retracement of a drop from 2014, another line of resistance. Meanwhile, money managers boosted their net-long positions in WTI to the highest level in data going back to 2006.
Macro Economic Indicators
Inflation rate (Y-o-Y) for November 2017 15.91%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at January 12, 2018, 39,531
Money Market Highlights
30 Day 14.3759
90 Day 15.4101
180 Day 17.1988
USD 1 Month 1.55250
USD 2 Months 1.62194
USD 3 Months 1.70393
USD 6 Months 1.86507
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 19-Apr-18 13.42
182d 19-Jul-18 15.16
364d 03-Jan-19 15.97
2y 13-Feb-20 13.38
3y 13-Dec-20 13.23
5y 27-Jan-22 13.02
Indicative Currency Exchange Rates
USDNGN (I&E) 359.00 360.00
EURUSD 1.2142 1.2344
GBPUSD 1.3681 1.3883
USDJPY 110.72 110.78
GBPEUR 1.1155 1.1359
USDZAR 12.2190 12.4223
EURNGN 438.85 444.22
GBPNGN 494.09 497.48