24 February 2014, Sweetcrude, Lagos – Local and international financial market products and services update.
NIGERIA: The Acting Governor of the Central Bank of Nigeria (CBN), Dr Sarah Alade has reassured Nigerians and the international community that the CBN has no plan to devalue the currency. Dr Alade pledged that the bank under her watch would be committed to sustaining the achievements already attained through the use of appropriate monetary policy tools to ensure price and financial system stability.
BONDS: Markets opened a touch softer on Friday following the suspension of Governor Sanusi Lamido. Market Rally started by mid-day and we saw yields stabilize; closing at 13.73% (average), up 60bps across the curve from Wednesday when the interbank market last traded. There were no significant flows from offshore investors.
BILLS: Yields on Treasury Bills closed at 13.81% on Friday. 20 FEB bills matured Thursday. The new treasury bills from Wednesday’s auction not yet trading in the secondary market. No sale was made at Friday’s OMO auction on the 111-day bill.
MONEY MARKET: OBB and ON rates both closed at 10.50%.
FX: Naira’s volatility remained unabated as market’s reaction to Sanusi’s suspension worsened the depreciating pressure on the local unit on Friday. The USDNGN opened to a bullish run and depreciated intraday to a high on the 167 levels. Supply of USD from the CBN helped the Naira to appreciate to the 163 levels, however strong demand ensured rates retraced to close at Naira’s worst close this year at 165 levels.
COMMODITIES: West Texas Intermediate crude rose from the lowest price in a week amid speculation that cold weather in the U.S. will boost demand for heating in the world’s biggest oil consumer. WTI for April delivery rose as much as 50 cents to $102.70 a barrel in electronic trading on the New York Mercantile Exchange
EU: Euro zone inflation due on Friday will be firmly in the sights of financial markets eager to establish whether the European Central Bank, ECB, has enough ammunition to ease monetary policy in the following week. Inflation in the 18-member euro zone unexpectedly slowed to 0.7 percent year-on-year in January, matching a four-year low set last October and confounding expectations for a rise to 0.9 percent. The ECB cut its main refinancing rate to a record low of 0.25 percent in November and left it at that level at its meeting earlier this month, but put markets on alert for a possible move in March.
CHINA: China is confident of maintaining around the same pace of growth in foreign trade this year as last year, the Ministry of Commerce has said. Shen Danyang, the spokesman for the ministry, also noted that exports may see some fluctuation in the first quarter of this year due to seasonal factors. China’s exports grew 7.9 percent for all of 2013 compared with the previous year, while imports rose 7.3 percent, missing an official 8 percent growth target.
Macro Economic Indicators
Inflation rate (yoy) for Jan. 2014 8%
Monetary Policy Rate current 12%
FX Reserves (Bn $) as at Feb. 19 41.302
Money Market Highlights
NIBOR (%)
O/N 11.0833
7 Day 11.4583
30 Day 11.7083
60 Day 12.0417
90 Day 12.2917
LIBOR (%)
USD 1 Month 0.1555
USD 2 Months 0.1956
USD 3 Months 0.2349
USD 6 Months 0.3305
USD 12 Months 0.5553
Benchmark Yields
Tenor Maturity Yield (%)
91 days 29-May-14 13.18
182 days 04-Sep-14 13.47
364 days 05-Feb-15 14.22
2 years 23-Apr-15 13.47
4 years 31-Aug-17 13.33
5 years 30-May-18 13.34
Indicative Currency Exchange Rates
Bid Offer
EURUSD 1.3736 1.3786
GBPUSD 1.6643 1.6693
USDJPY 102.31 102.71
USDCHF 0.8874 0.8904
GBPEUR 1.2116 1.2126
USDZAR 10.90 11.05
USDNGN 165.05 165.35
JPYNGN 1.6132 1.6632
CHFNGN 185.99 189.99
EURNGN 226.71 230.71
GBPNGN 274.69 278.69
ZARNGN 15.14 17.14
Fx
Hi Low Close Prev.Close
USD/NGN 166.65/75 163.90/00 165.55/75 163.00/10