*Financial markets.
23 February 2018, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: The Federation Account Allocation Committee on Thursday approved the sum of N635.55bn to be shared to the three tiers of government from the Federation Account as statutory allocation for the month of January.
The figure was announced by the Accountant-General of the Federation, Idris Ahmed, shortly after the FAAC meeting, which was held at the headquarters of the Ministry of Finance in Abuja.
He said the N635.55bn shared in January was about N20bn lower than the N655.17bn, which the committee allocated to the three tiers of government in December.
FX: The daily average turnover this week in the I&E window stands at $184.37m, 55% higher than the previous week YTD $8.68bn has been traded in the window with the fixing printing in the tight range of $/N 360 – 360.75.
FIXED INCOME: As expected, CBN resumed the OMOs yesterday – N67.6bn of 23 Aug 2018 bill was sold at 14.4% discount.
The firm tone remained in bills while in bonds selling was weak and was mostly quiet. Little activity in bonds was centred around the 10year, with locals switching between the new 28s and the 27s.
U.S: The United States is due to announce its largest package of sanctions yet against North Korea to further pressure Pyongyang over its nuclear and missile program, as South Korea readies itself for more talks with the North’s officials.
Tougher sanctions may jeopardize the latest detente between the two Koreas amid their preparations to create conditions appropriate to hold a summit between North Korean leader Kim Jong Un and South Korean President Moon Jae-in.
A senior U.S. administration official, who spoke to Reuters on condition of anonymity, called the new penalties “the largest package of new sanctions against the North Korea regime,” without giving details.
U.K: British inflation will outstrip gains in house prices this year and next, particularly in the capital, as uncertainty over Brexit and weak consumer spending power hits demand, a Reuters poll found on Friday.
According to the latest quarterly Reuters poll of 33 housing market specialists, taken in the past week, property prices will rise 2.0% this year, much slower than the predicted 2.5% rise in general costs in the economy.
In London – long the hot-bed for foreign investors who sent prices skyrocketing in the past decade – the difference will be even starker: the average price is expected to fall 0.5% this year.
COMMODITIES: Investor angst that a U.S. oil boom will swell stockpiles is giving way to relief that supply is instead moving out to be used across the globe, spurring crude to a second weekly advance.
New York futures are little changed after closing at the highest level in two weeks on Thursday. While the U.S. is pumping out record volumes, that’s being accompanied by a surge in exports, which has jumped to a four-month high. Even Saudi Arabia has considered shipping American crude abroad. The demand for cargoes is helping drain the nation’s stockpiles, easing concern that OPEC’s efforts to erode a glut will be undermined.
Macro Economic Indicators
Inflation rate (Y-o-Y) for January 2017 15.13%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at February 21, 2018, 41,816
Money Market Highlights
NIBOR (%)
O/N 9.7083
30 Day 14.8678
90 Day 15.9172
180 Day 17.9448
LIBOR (%)
USD 1 Month 1.58320
USD 2 Months 1.68886
USD 3 Months 1.82000
USD 6 Months 2.03831
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 24-May-18 14.72
182d 23-Aug-18 15.58
364d 14-Feb-19 15.44
2y 13-Feb-20 14.03
3y 17-Jan-21 13.80
5y 27-Jan-22 13.55
Indicative Currency Exchange rates
Bid Offer
USDNGN (I&E) 359.00 360.00
EURUSD 1.2216 1.2418
GBPUSD 1.3869 1.4071
USDJPY 108.92 108.95
GBPEUR 1.1243 1.1447
USDZAR 11.4933 11.6968
EURNGN 442.51 443.88
GBPNGN 502.68 503.48
