*Financial markets.
20 June 2018, Sweetcrude, Houston, Texas — The local and international financial market products and services update.
NIGERIA: Nigeria’s President Buhari will sign the 2018 budget into law on Wednesday, a presidency spokesman said. Femi Adesina, in an emailed statement issued on Tuesday, said the spending plan passed by parliament last month would be signed on Wednesday at 12 p.m. (1100 GMT). Africa’s top oil producer emerged from its first recession in 25 years in 2017, helped by higher crude prices, but growth remains fragile. The recession was largely caused by low crude prices and militant attacks on energy facilities since oil sales make up two-thirds of government revenue. Parliament passed a 9.12 trillion naira (29.8 billion) spending plan last month which is higher than the 8.6 trillion naira budget presented to parliament by Buhari in November, because lawmakers increased the assumed oil price to $51 per barrel, from $45.
FX: Market started the week well bid, there were only a handful of offers available between the $/N 361.50 – 362.50 range. Buying interest is from both FPIs and local Corporates. Yesterday, CBN offered $100m via its wholesale auction and an estimated $110m for invisible (PTA, BTA…) and SME transactions. Bid levels at the wholesale auction now above the $/N 343 handle. The last FX reserves update shows the 30-day moving average rebounded with the gross figure now at $47.627bn (13 June 2018).
FIXED INCOME: The fixed income market resumed trading for another short week with the similar trend to last week. Money Market opened with an excess of 500bn in the system, forcing CB to issue OMO bills to mop up the excess liquidity. Only a total of 136bn of the two maturities were sold. There’ll be the another PMA auction today; on offer are 5bn 91day, 20bn 182day and 41b 364day bills. We don’t expect any significant change from Last week’s outcome. O/N closed at 10%.
UK The pound’s slide has entered a sixth consecutive day ahead of a key Brexit vote in parliament that will decide whether MPs will have had a “meaningful” say on negotiations with the EU. Prime minister Theresa May is facing a rebellion from her own party’s pro-European MPs over the vote that will attempt to wrest control of Brexit talks from the government, giving parliament the opportunity to reject a deal or force ministers to return to negotiations. Ahead of the vote, sterling has slipped back 0.2pc against the dollar to $1.3152, a seven-month low
U.S: Donald Trump’s threat to impose tariffs on another $200 billion of Chinese imports could cut as much as half a percentage point from the nation’s economic growth, according to economists. The warning comes amid signs that the world’s second-biggest economy — and biggest contributor to global growth — is already slowing down as a simmering trade dispute with the U.S. risks spiralling into a protracted trade war. China’s economy grew by 6.9 percent in 2017 and the government has set a growth target of 6.5 percent for the current year.
COMMODITIES: Iran put itself on a collision course with Saudi Arabia at this week’s OPEC meeting, rejecting a potential compromise that would see a small oil-production increase to appease energy consumers. Bijan Namdar Zanganeh “I don’t believe in this meeting we can reach an agreement,” Bijan Namdar Zanganeh, the Iranian oil minister, told reporters upon his arrival to Vienna, suggesting the gathering on Friday may end without a deal for the first time since 2011. Benchmark Brent crude, which fell 0.4 percent on Tuesday, gained as much as 42 cents on Wednesday and was trading at $75.45 a barrel at 7:24 a.m. in London.
Macro Economic Indicators
Inflation rate (Y-o-Y) for May 2018 11.61%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at June 13, 2018, 47,627
Money Market Highlights
NIBOR (%)
O/N 8.4167
30 Day 13.7537
90 Day 14.0511
180 Day 15.3202
LIBOR (%)
USD 1 Month 2.08375
USD 2 Months 2.15050
USD 3 Months 2.32469
USD 6 Months 2.49688
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 13-Sep-18 12.99
182d 13-Dec-18 12.74
364d 04-Apr-19 13.56
2y 13-Feb-20 13.07
3y 15-Jul-21 13.52
5y 27-Jan-22 13.16
Indicative Currency Exchanges Rates
Bid Offer
USDNGN (I&E) 360.00 362.00
EURUSD 1.1487 1.1689
GBPUSD 1.3069 1.3271
USDJPY 110.18 110.21
GBPEUR 1.1264 1.1468
USDZAR 13.5577 13.7611
EURNGN 417.37 418.73
GBPNGN 474.36 475.76
