27 March 2018, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: Federal Inland Revenue Service, FIRS, Mr. Babatunde Fowler, yesterday, allayed fears over the report by the International Monetary Fund, IMF and World Bank that Nigeria was at risk of economic crisis, saying the country will soon meet the target of the international bodies. He also restated that the nation is experiencing upward growth through various initiatives of President Muhammadu Buhari’s administration. Recall that the IMF and World Bank had reported that any nation with a Gross Domestic Product, GDP, below 15 percent was at risk of economic crises.
FIXED INCOME: Quiet day of trading to start the week in the bond market. Not much to report either in bills as it was a mixed tone for most of the day. Money market opened higher circa N150bn but whispers of unspecified naira debits kept O/N rates at 40%.
FX: Quiet opening in the I&E window, we saw little activity between banks on the day. Last week’s turnover was $1,098.60m within the reported range of $/N 320.00 -361.00, down 27.5% from the previous week. We expect the level for most trades to remain in the tight range of $/N 359.00 – 361.00 this week.
E.U.: Economic sentiment in the 19-countries sharing the euro slipped for the third month in a row in March, data from the European Commission showed on Tuesday, suggesting economic growth in the bloc was not as steady as previously thought. The Commission’s Economic Sentiment Indicator fell to 112.6 in March from a revised 114.2 in February, below the average forecast of 113.4 in a Reuters poll of 34 economists. The downbeat reading of economic sentiment paired with falling inflation expectations for consumers and manufacturers alike, as well as earlier data suggesting loan growth and money supply in the Eurozone had also slowed, kicked the euro off a five-week high.
U.K.: The Bank of England said it considered this month increased
the amount of money banks must set aside to counter their lending risks as Britain’s economy grows but held off on taking a decision until June. The BoE said on Tuesday its Financial Policy Committee, which oversees risks to the economy from the banking system, had seen arguments for setting the so-called countercyclical capital buffer (CCyB) a little above its current 1 percent level. “Risks had increased since the Committee first judged that a 1 percent UK CCyB rate was appropriate, in Q1 2016,” the BoE said in a series of minutes from the FPC’s meeting on March 12.
COMMODITIES: Oil traded above $65 a barrel as global trade tensions showed signs of easing, countering concerns that U.S. crude stockpiles may have resumed their expansion last week. Brent for May settlement rose 27 cents to $70.39 a barrel on the London-based ICE Futures Europe exchange, after dropping 33 cents on Monday.
Macro Economic Indicators
Inflation rate (Y-o-Y) for February 2017 14.33%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at March 21, 2018, 45.360
Money Market Highlights
NIBOR (%)
O/N 46.2083
30 Day 15.3054
90 Day 16.3859
180 Day 18.3057
LIBOR (%)
USD 1 Month 1.87500
USD 2 Months 1.99338
USD 3 Months 2.29155
USD 6 Months 2.44971
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 14-Jun-18 14.65
182d 13-Sep-18 15.42
364d 14-Feb-19 15.35
2y 13-Feb-20 13.70
3y 15-Jul-21 13.62
5y 27-Jan-22 13.59
Indicative Currency Exchange Rates
Bid Offer
USDNGN (I&E) 358.95 360.60
EURUSD 1.2309 1.2511
GBPUSD 1.4014 1.4216
USDJPY 105.62 105.65
GBPEUR 1.1272 1.1476
USDZAR 11.5662 11.7696
EURNGN 445.75 447.11
GBPNGN 507.09 508.48
