24 October 2011, Sweetcrude, Lagos- International News
· EUR – The euro held its ground against the dollar, with light selling pressure from macro players capping any gains, as markets clung to hopes EU policymakers were moving towards stemming the regions debt crisis. The EUR was steady at EUR/USD 1.3891 after a summit on Sunday where the EU neared agreement on bank recapitalisation and the use of the European Financial Stability to stave off bond market contagion
· GBP – Sterling was up 0.3 percent at $ 1.5997, having hit a high of $ 1.6001 with near term resistance seen at its 100 – day moving average of $ 1.6048.
· JPY – Japans finance minister put traders on alert for possible currency intervention as the yen’s rise to a record high against the dollar threatened to further squeeze exporters profits and hold back economic recovery.
Nigeria News
· NGN Foreign exchange – Nigeria’s Central bank said it will sell U.S dollars directly into the market and at auctions, while it lifted the amount of dollars banks can hold in reserve, in a continued effort to stabilize the naira.
The Net Opening Position was revised from 1% to 3% of share holders limits, this would aid the increase of dollar supply to the interbank market.
· Money Market – the Nigerian interbank lending rates climbed to an average of 14.50% from 13.50%. as liquidity thinned out with outflows to bonds and FX purchases by lenders. We expect rates to remain at the same level this week until budget allocations start coming in to provide more liquidity and help push rates down.
· Bonds – Nigeria’s state asset management company will complete the acquisition of all non performing loans from banks rescued in a $ 4 bio 2009 bailout by the end of October.
FX
Hi Low Close Prev.Close
USD/NGN 154.50/60 152.65/75 159.95/160.05 158.90/159.00
