23 July 2018, Sweetcrude, Lagos — The local and international financial market products and services updates. NIGERIA: Nigeria’s debt office will devise a green bond programme before the end of 2018 to raise funds for environmental projects, a junior minister for the environment said on Friday.
Ibrahim Jibril said the capital market could see issues of around 208 billion Naira ($682 million) this year to fund projects to reduce carbon emissions. The ministry said the total figure was not fixed and would depend on an evaluation of the projects that need funding. “Before the year runs out the DMO will come up with a program where we will come to the market for another issue,” Jibril told reporters at the listing of its debut green bond on the Nigerian Stock Exchange. Nigeria has been exploring options to fund its successive record budgets, especially after an oil price collapse in late 2014 that triggered a recession two year later. The economy has since recovered but growth is still fragile. The environment ministry has said a bond programme for environmental projects is part of the government’s aim to align with a global objective of expanding the market for finance for efforts to fight climate change.
FX: CBN held its first retail intervention for only Yuan denominated transactions on Friday. The sectors targeted at this intervention are Raw materials & machinery and Agriculture. The CBN also announced its usual retail intervention. Naira was stable throughout the week in the I&E window, bid and the offer was pretty much matched in a range of $/N 362 – 363.
FIXED INCOME: Quiet close to last week in the bond market, bill sentiment reversed following the sell-off from Thursday as naira refunds boosted market liquidity as well.
Liquidity expected to reduce following Friday’s debits for the FX retail auction but will still be enough to support buying in bills come this week.
There will be a bond auction this week Wednesday with N90b to be issued across the 5, 7 and 10yr.
CHINA: Threats and intimidation on trade will never work on China, its foreign ministry said on Monday after U.S. President Donald Trump said he was ready to impose tariffs on all $500 billion of imported goods from the country.
China also has no need to use competitive devaluation of its currency to aid its exports, Geng Shuang, a spokesman for the foreign ministry, told a daily news briefing.
U.S. Treasury Secretary Steven Mnuchin said last week the United States was monitoring the recent weakness in China’s Yuan currency and would review whether it had been manipulated.
U.S: U.S. President Donald Trump will showcase American-made products ranging from beef jerky and cowboy boots to the Lockheed Martin Corp F-35 fighter jet on Monday, as his administration wages trade battles on a series of fronts.
White House spokeswoman said on Sunday that Trump would make remarks at the exhibit designed to demonstrate the administration’s “commitment to ensuring more products are made in America.” Vice President Mike Pence, six Cabinet secretaries, and some dozen other senior officials will also attend.
COMMODITIES: Oil traded near $68 a barrel as investors assessed the impact of escalating trade frictions between the world’s two biggest economies against a decreasing number of American oil rigs and flaring tensions between the U.S. and Iran. September futures in New York were little changed following a third straight weekly decline. The world’s top finance chiefs warned on Sunday that trade tensions threatened global growth as the engines of leading economies falls out of sync.
Macro Economic Indicators
Inflation rate (Y-o-Y) for May 2018 11.20%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at July 19, 2018, 47,409
Money Market Highlights
30 Day 12.7020
90 Day 13.3316
180 Day 14.8164
USD 1 Month 2.06900
USD 2 Months 2.17938
USD 3 Months 2.34156
USD 6 Months 2.52425
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 18-Oct-18 11.30
182d 10-Jan-18 12.65
364d 04-Apr-19 13.38
2y 13-Feb-20 13.51
3y 15-Jul-21 13.60
5y 27-Jan-22 13.75
Indicative Currency Exchange Rates
USDNGN (I&E) 360.00 362.00
EURUSD 1.1621 1.1823
GBPUSD 1.3035 1.3237
USDJPY 111.03 112.00
GBPEUR 1.1100 1.1310
USDZAR 13.3550 13.5757
EURNGN 419.54 424.50
GBPNGN 473.30 480.50