27 October 2011, Sweetcrude, Lagos- International news
· USD – The USD weakened against most major peers after European leaders expanded a rescue fund for indebted nations and reached an accord with lenders on write down of Greek Debt.
· GBP – The pound fell the most in two weeks against the euro as European Union leaders agreed to expand a rescue fund for indebted nations damping demand for the perceived safety for the British currency
. JPY – The BOJ, expanded stimulus as Europe’s sovereign-debt crisis caused an appreciation in the yen. The BOJ policy board expanded their credit and asset purchase programs to a total of JPY55 trillion from JPY50 trillion and keeps the overnight lending rate between zero and 0.1 percent.
· The Nigerian Governors’ Forum has asked the supreme Court to restrain the FG from making withdrawals from the Excess Crude Account, or replacing the account by another name pending the hearing and determination of a 2008 suit. The main issue in dispute in the suit is whether the payment of revenue which accrued to the FG from the proceeds of crude oil sales, petroleum profits tax and oil royalties into any account other than the Federation Account was illegal and unconstitutional
· Bonds – Another Liquid and very volatile session yesterday as the markets continue to try to find levels and stabilise. We expect the curve to continue to be distorted with the 20yr trading below the 2, 3 and 5yr. We expect continued volatility until the market settles or until the curve establishes its true points.
· Money Market – OBB is stable at 14.00% with unsecured rates dipping slightly to close at 14.75%.liquidity is easing slightly
NIBOR(%) LIBOR (%)
O/N 14.8750 USD 1 month 0.2458
7 Day 15.3750 USD 2 month 0.3292
30 Day 16.0000 USD 3 month 0.4278
60 Day 16.4167 USD 6 month 0.6156
90 Day 16.9583 USD 12 month 0.9272
Y/Y Consumer Inflation Sep 2011 : 10.30%
FX Reserves: 21 October 2011 USD33.67bn
Source: FMD and CBN