18 May 2018, Sweetcrude, Houston, Texas — The local and international financial market products and services update.
NIGERIA: The Federal Government has launched an up-to-date online portal, `iGuide Nigeria’, containing necessary information and relevant data for willing investors. The Minister of Trade and Investment, Mr Okechukwu Enelamah, at the launch in Abuja on Thursday, said the portal would greatly improve the Ease of Doing Business in the country.
The latest World Bank rating says Nigeria ranks 145 out of 190 countries listed in the Ease of Doing Business index for 2018. The report indicated that Nigeria had moved up by 24 points from 169th position on the 2017 ranking and also 170th position on the 2016 ranking to 145 in the World Bank 2018 Report.
FX: We continue to see buying interest from offshore FPIs in the I&E window, this maintains the pair above the $/N 360 handle. There were decent offers in the $/N 361.50 – 362.50 range. Wednesday’s turnover was just shy of $114.89m, the lowest in more than a month and Yesterday stood at $202.47m. We expect the CBN to release the results of last week’s FX auction.
FIXED INCOME: N300bn was offered at the weekly OMO yesterday but only N41bn was sold. Poor participation was due to the fact that the 6 month bill was floated (vs.9mth), coupled with secondary market offering better yields.
Cut off remained at 12.15% discount and will be monitored subsequently.
Market liquidity is estimated to open N176bn long today following the maturities and OMO debits. Bill market expected to remain skewed to buyers while bond market could see more from sellers ahead of next week’s auction.
CHINA: China scrapped an anti-dumping and anti-subsidy probe into U.S. sorghum imports as the two countries seek to resolve a trade dispute.
The investigation isn’t in line with public interest, China’s Ministry of Commerce said in a statement on Friday. The Asian country announced the probe in February and in April imposed a 178.6% anti-dumping deposit. The ministry said it will return the deposits.
Authorities found that the investigation “will increase costs for downstream breeding sector as well as living costs for a majority of consumers,” the ministry said.
E.U.: Italy’s two anti-establishment parties agreed the basis for a governing accord on Thursday that would slash taxes, ramp up welfare spending and pose the biggest challenge to the European Union since Britain voted to leave the bloc two years ago.
Leaders of the far-right League and the 5-Star Movement, which emerged as two of the biggest parties from an inconclusive March 4 election, have been discussing a common policy agenda for a coalition government and end more than 10 weeks of stalemate.
COMMODITIES: Oil in London is set for the longest weekly run of gains in seven years on growing concerns over supply disruptions from the Middle East to Venezuela and on signs a global glut has dwindled.
Brent futures are heading for a sixth weekly advance after topping $80 a barrel for the first time since 2014 on Thursday. Renewed U.S. sanctions on third-largest OPEC producer Iran and shrinking supplies from Venezuela have buoyed crude’s recent rally. Additionally, the International Energy Agency said this week that a global surplus has finally been eliminated thanks to output cuts by the Organization of Petroleum Exporting Countries and its allies.
Macro Economic Indicators
Inflation rate (Y-o-Y) for March 2017 12.48%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at May 15, 2018, 47,787
Money Market Highlights
30 Day 14.0436
90 Day 14.8987
180 Day 16.6722
USD 1 Month 1.93500
USD 2 Months 2.09367
USD 3 Months 2.32563
USD 6 Months 2.49438
USD 12 Months 1.72400
Yields Tenor Maturity Yield (%)
91d 16-Aug-18 12.56
182d 15-Nov-18 12.78
364d 04-Apr-19 14.47
2y 13-Feb-20 12.60
3y 15-Jul-21 13.44
5y 27-Jan-22 13.38
Indicative Currency Exchange Rates
USDNGN (I&E) 359.00 360.00
EURUSD 1.1718 1.2010
GBPUSD 1.3425 1.3961
USDJPY 110.50 111.20
GBPEUR 1.1328 1.1558
USDZAR 12.3605 12.7520
EURNGN 424.50 427.44
GBPNGN 487.08 490.50