07 February 2018, Sweetcrude, Lagos — The local and international financial market products and services update
NIGERIA: Vice President Yemi Osinbajo has launched the Economic and Growth Recovery Plan (ERGP) Focus Laboratories on power, agriculture and manufacturing to fast track economic growth
Osinbajo said in Abuja on Tuesday that the newly inaugurated Focus Labs would further boost economic growth and ensure that Nigeria continued its journey of building a competitive economy and that government was ready to bend over backwards to accommodate feedback from private sector, investors.
FX: Interbank market activities were bit subdued yesterday in the I&E window. Interesting that turnover on the day was higher than the previous day , indicating a well matched market per DMB’s and their clients. Range traded on the day 325-361.50 according to the FMDQ website.
FIXED INCOME: Bond market took a bearish turn in yesterday’s trading.
Persistently sluggish demand in combination with the global equities rout led to significant sell-off, driving yields 28bps wider on average.
Reduced LCY liquidity also led to a general change in direction in the bill space as market sold off. Today, we expect the bearish sentiments to persist in both bills and bonds.
SOUTH AFRICA : South African President Jacob Zuma appeared a step closer to resigning as he held crunch negotiations on the terms of his exit with the new leader of the ruling African National Congress, Cyril Ramaphosa.
The talks prompted the ANC’s National Executive Committee, its top decision-making body, to postpone a special meeting called for Wednesday to decide whether to force Zuma from office. Parliamentary speaker Baleka Mbete told eNCA television that she expects progress in Zuma’s discussions with Ramaphosa during the day.
Zuma’s expected departure has been cheered by many investors who welcome Ramaphosa’s pledges to bolster growth and clamp down on graft.
U.K: The U.K. economy is being bailed out by stronger growth in the euro area and the rest of the world, according to the National Institute of Economic and Social Research.
A better-than-expected global expansion accounted for about a third of the increase in U.K. gross domestic product last year, explaining the nation’s stronger-than-forecast performance in the wake of the Brexit vote, the think tank said in a report Wednesday.
The resulting boost to trade, at a time when future commerce relationships remain uncertain, was “critical” for the U.K. and helped push growth last year to 1.8%from the 1.2% it would have been without such an uplift, Niesr said.
COMMODITIES: A day after oil was swept up in a global market rout, crude is rebounding as investor focus snaps back to U.S. supplies.
Futures in New York rose as much as 1.3%, following a 1.2% drop in the previous session as a flight from risk shook assets around the world. While equity markets are clawing back on calls to ‘buy the dip,’ crude’s advance is being driven by industry data that showed an unexpected decrease in U.S. stockpiles. Investors are watching if government data also surprises with a decline when it’s released on Wednesday.
Macro Economic Indicators
Inflation rate (Y-o-Y) for December 2017, 15.37%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at February 02, 2018, 40,793
Money Market Highlights
NIBOR (%)
O/N 36.8929
30 Day 15.1878
90 Day 15.9360
180 Day 17.4056
LIBOR (%)
USD 1 Month 1.57957
USD 2 Months 1.66899
USD 3 Months 1.78902
USD 6 Months 1.99214
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 10-May-18 15.03
182d 09-Aug-18 15.09
364d 03-Jan-19 16.09
2y 13-Feb-20 13.92
3y 17-Jan-21 13.69
5y 27-Jan-22 13.43
Indicative Currency Exchange Rates
Tenor Maturity Yield (%)
91d b 10-May-18 15.03
182d 09-Aug-18 15.09
364d 03-Jan-19 16.09
2y 13-Feb-20 13.92
3y 17-Jan-21 13.69
5y 27-Jan-22 13.43