Nigeria Global Markets Update 23 March 2018

Money markets Fixed income

The overnight and OBB rates fell to 8.08% and 6.83%, from
22.08% and 20.00%, as the market was awash with liquidity on
the back of the NGN150bn OMO bill maturities.
Rates should trend upwards today as a result of the expected
debit for the NGN65bn FGN bond auction winnings.
Interbank spot: USD/NGN
The CBN remains the primary supplier in the NiFEX market,
with its periodic Wholesale and Retail Secondary Market
Intervention Sales (SMIS) programme.
The FX rate has remained stable on the back of sustained
interest in the local fixed income and equity capital markets.
We expect the pair to continue to trade between USD/NGN360
and 362 in the short to medium term.
The fixed income market was relatively active during
yesterday’s trading session. The market continued with a sell-
off around the 182-day maturity as a result of profit-taking post
the T-bill auction. The 91- and 364-day maturities remained
unchanged from the previous day’s levels.
Bond yields inched higher across all maturities following the
auction. This was largely a result of the clearing rates at the
auction printing above secondary market levels.
The Senate has approved five of the six candidates nominated
by the executive branch into the Monetary Policy Committee
(MPC). The first MPC meeting of 2018 will hold on 3rd and 4th
April. We expect the status quo to be maintained at this
meeting. However, there is a likelihood of a rate cut at the May
meeting.

T-bill yields should inch higher into the close of the week as
Offer rates 21-Mar 22-Mar Change
market participants sell-off due to reduced money-market
NiFEX 336.12 336.40  0.28 liquidity. We should see renewed interest in bonds over the
next few days.
NAFEX 360.03 360.08  0.05

Tenor 21-Mar 22-Mar Change (bp)

Commodities 91-day 14.45 14.45 -

Crude took a turn lower amid an equity sell-off largely pinned to 182-day 14.95 15.06 0.11
concerns over a trade war with China. 364-day 15.32 15.32 -
Jun-19 13.41 13.56 0.15
Futures edged down by as much as 1.2% in New York on
Feb-20 13.32 13.44 0.12
Thursday following two sessions of gains. Global equities
declined along with crude oil, as focus shifted to the potential Jul-21 13.42 13.53 0.11
for US President Donald Trump to announce tariffs against Jan-22 13.39 13.46 0.07
China. Trump is set to announce about US$50 billion of tariffs
Mar-24 13.43 13.48 0.05
against China over intellectual-property violations on Thursday,
according to a person familiar with the matter. (Bloomberg). Jan-26 13.50 13.58 0.08
Mar-27 13.54 13.57 0.03
Jul-34 13.51 13.51 -
Mar-36 13.35 13.42 0.07
Apr-37 13.30 13.33 0.03

Current rate (%) Current

LIBOR 30-day 1.86125 Brent Crude US$69.18

NIBOR 30-day 14.1722 NAFEX (offer rate) 361.00
NIBOR 90-day 15.4922 Reserves (as at 21 Mar 2018) US$45.36bn

RMB Nigeria indicative term deposit rates1

NGN CALL 1-m 2-m 3-m 6-m 12-m
50,000,000 5.00% 11.50% 13.00% 14.00% 15.00% 16.00%
1
USD CALL 1-m 2-m 3-m 6-m 12-m
5,000,000 0.50% 1.20% 1.30% 1.40% 1.50% 1.80%

Note: 1. Indicative rates are gross of withholding tax (10%)

RMB Nigeria Note: The deposit placement is subject to the completion of on-boarding forms (KYC) for RMB Nigeria, a compliance requirement from the Central Bank of
Nigeria. Currencies available on request: ZAR/EUR/GBP.
International rating – RMB Nigeria is a wholly owned subsidiary of the FirstRand Bank [BB+ /Baa3] S&P and Moody’s respectively.
 Treasury bills Benchmark bonds

Source: Reuters Source: Reuters

NIBOR Oil prices and FX

Source: Reuters Source: Reuters

FGN Eurobonds OTC FX futures

Source: Reuters Source: FMDQ

Dealing Room: 234 1 463 7990 Global.Markets@rmb.com.ng

Global Markets:

Nadia Zakari +234 1 463 7940 nadia.zakari@rmb.com.ng Ayodeji Oyeniyi +234 1 463 7943 ayodeji.oyeniyi@rmb.com.ng Chinonye Amadi +234 1 4637924 nonye.amadi@rmb.com.ng
Pelumi Olawale +234 1 463 7959 pelumi.olawale@rmb.com.ng

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forecasts and provision of the information contained in this report, the Bank does not make any representations or give any warranties as to their correctness, accuracy or completeness, nor does
the Bank assume liability for any losses arising from errors or omissions in the opinions, forecasts or information irrespective of whether there has been any negligence by the bank, its affiliates or
any officers or employees of the Bank, and whether such losses be direct, indirect or consequential.