| MACRO ECONOMIC INDICES | |
| Inflation | 17.75% |
| MPR | 11.50% |
| Brent Crude | $74.49bp |
| External Reserves | $33.17bn |
| GDP | -13.50% |
| Foreign Exchange | N410.14 |
| FOREIGN EXCHANGE MARKET | ||
| Tenor | Current Rate ($/N) | Previous Rate ($/N) |
| CBN Official | 410.14 | 410.13 |
| CBN SMIS Window | 380.69 | 380.69 |
| I&E FX Window | 411.63 | 411.67 |
| Black Market(cash) | 503.00 | N503.00 |
FOREIGN EXCHANGE MARKET
The I&E FX market, Naira appreciated by 0.01 percent as the dollar was quoted at 411.63 as against the last close of 411.67. Most participants maintained bids between 400.00 and 412.20 per dollar.
OIL PRICE
Oil rose to the highest in a week amid expectations that recovering demand from the U.S. to India and Europe will further tighten global crude market.
DAILY FOREIGN EXCHANGE RATES (DOLLAR / POUNDS / EURO )
| Date | Naira/Dollar (NGN/USD) | Naira/Pound (NGN/GBP) | Naira/Euro (NGN/EUR) |
| Buy/Sell | Buy/Sell | Buy/Sell | |
| July 22nd, 2021 | 495/503 | 698/705 | 585/592 |
| July 16th, 2021 | 500/505 | 702/708 | 590/596 |
| July 15th, 2021 | 500/505 | 702/708 | 590/596 |
| July 14th,2021 | 500/505 | 702/708 | 590/595 |
CBN/ INTERBANK RATES
| Date | Naira/Dollar (NGN/USD) | Naira/Pound (NGN/GBP) | Naira/Euro (NGN/EUR) |
| July 22nd, 2021 | 410.14 | 566.93 | 486.43 |
| July 16th, 2021 | 410.13 | 568.93 | 484.40 |
| July 15th, 2021 | 410.13 | 568.72 | 484.15 |
| July 14th,2021 | 410.13 | 568.04 | 485.73 |
| FIXED INCOME SECURITIES AND MONEY MARKET UPDATE |
SECONDARY MARKET
At the fixed-income securities segment, average yields on treasury bills inched marginally close at 6.81 % from 6.82 % on the previous trading session. Activities were seen on 14-Jul-22 maturity while other bills were inactive. Yields on short and mid- maturities remained unchanged from the previous trading session.
OMO BILLS
On the other side, the OMO bills market, the average yield across the curve increased by 6 bps to close at 8.69 % as against the last close of 8.63%. Selling pressure was seen across the medium-term maturities with the average yield expanding by 18 bps. However, the average yield across short-term and long-term maturities declined by 1 basis point and 3 bps, respectively. OMO 4-Jan-22 maturity bill witnessed maximum selling pressure with a yield increase of 194 bps.
TREASURY BILLS PRIMARY MARKET AUCTIONS (PMA).
| Tenor | 14th July 2021 current Stop rate | 30TH June 2021 Previous stop rate |
| 91 | 2.50% | 2.50% |
| 182 | 3.50% | 3.50% |
| 364 | 8.67% | 9.64% |
BENCHMARK SECONDARY MARKET TREASURY BILLS
| TENOR | Maturity | Closing Rate (%) | Yield (%) |
| 98 | 28-Oct-21 | 5.43 | 5.51 |
| 112 | 11-Nov-21 | 5.37 | 5.46 |
| 126 | 25-Nov-21 | 5.31 | 5.41 |
| 175 | 13-Jan-22 | 5.10 | 5.23 |
| 189 | 27-Jan-22 | 6.60 | 6.83 |
| 203 | 10-Feb-22 | 6.80 | 7.07 |
| 217 | 24-Feb-22 | 7.00 | 7.30 |
| 231 | 10-Mar-22 | 7.20 | 7.54 |
| 238 | 17-Mar-22 | 7.30 | 7.66 |
| 252 | 31-Mar-22 | 7.50 | 7.91 |
| 280 | 28-Apr-22 | 7.90 | 8.41 |
| 294 | 12-May-22 | 8.10 | 8.67 |
| 308 | 26-May-22 | 8.30 | 8.93 |
| 322 | 9-Jun-22 | 8.40 | 9.07 |
| 343 | 30-Jun-22 | 8.66 | 9.43 |
| 357 | 14-Jul-22 | 8.05 | 8.74 |
MONEY MARKET
The overnight rate increased by 3.25 % to close at 8.25 % as against the last close of 11.50% and the Open Buy Back rate decreased by 3.00% to close at 8.00 % compared to 11.00 % on the previous day.
| Tenor | Rate (%) |
| Open buy back | 8.00 |
| Overnight | 8.25 |
PREVIOUS FGN BOND PMA AUCTION RESULT
| Auction Date | 10 YR | 15YR | 25YR | 30YR |
| 19-Jul-21 | 12.35% | 0 | 13.15% | 13.70% |
| 23-Jun-21 | 12.74% | 13.50% | 0 | 13.70% |
| 19-May-21 | 13.10% | 14.00% | 0 | 14.20% |
| 21-Apr-21 | 12.25% | 13.34% | 13.85% | 0 |
| 24-Mar-21 | 10.50% | 11.50% | 12.00% | 0 |
FGN bonds secondary market was relatively quiet, as the average bond yield across the curve cleared lower by 15 bps to close at 9.53 % from 9.68 % on the previous day. The FGNSB 10-JUL-2022 bond was the most active bond with a dip in yield of 74 bp. While the average yields across short tenor, medium tenor, and long tenor of the curve declined by 19 bps, 1 basis point, and 4 bps, respectively.
FGN BOND MARKET YIELD CURVE
FGN SECONDARY MARKET BENCHMARK BOND
| Description | Coupon (%) | Maturity Date | Yield (%) | Closing Price |
| 16.39 27-JAN-2022 | 16.39 | 27-Jan-22 | 5.49 | 105.45 |
| 12.75 27-APR-2023 | 12.75 | 27-Apr-23 | 10.99 | 102.72 |
| 14.20 14-MAR-2024 | 14.20 | 14-Mar-24 | 11.08 | 106.95 |
| 13.53 23-MAR-2025 | 13.53 | 23-Mar-25 | 11.59 | 105.63 |
| 12.50 22-JAN-2026 | 12.50 | 22-Jan-26 | 12.00 | 101.70 |
| 16.2884 17-MAR-2027 | 16.29 | 17-Mar-27 | 12.38 | 115.53 |
| 13.98 23-FEB-2028 | 13.98 | 23-Feb-28 | 12.35 | 107.18 |
| 15.00 28-NOV-2028 | 15.00 | 28-Nov-28 | 12.45 | 111.99 |
| 14.55 26-APR-2029 | 14.55 | 26-Apr-29 | 12.51 | 109.89 |
| 12.49 22-MAY-2029 | 12.49 | 22-May-29 | 12.51 | 99.85 |
| 8.50 20-NOV-2029 | 8.50 | 20-Nov-29 | 12.56 | 79.38 |
| 10.00 23-JUL-2030 | 10.00 | 23-Jul-30 | 12.61 | 86.19 |
| 12.1493 18-JUL-2034 | 12.15 | 18-Jul-34 | 12.93 | 95.17 |
| 12.50 27-MAR-2035 | 12.50 | 27-Mar-35 | 13.10 | 96.19 |
| 12.40 18-MAR-2036 | 12.40 | 18-Mar-36 | 13.11 | 95.40 |
| 16.2499 18-APR-2037 | 16.25 | 18-Apr-37 | 13.12 | 120.59 |
| 9.80 24-JUL-2045 | 9.80 | 24-Jul-45 | 13.19 | 75.52 |
| 14.80 26-APR-2049 | 14.80 | 26-Apr-49 | 13.22 | 111.58 |
| 12.98 27-MAR-2050 | 12.98 | 27-Mar-50 | 13.12 | 98.95 |
| MARKET NEWS HEADLINES |
Gold trades below $1,800 as global shares and cryptocurrency market rally
Gold is bearish in the London session today, trading below the $1,800 trading range as the dollar gains momentum on increased investor appetite as a result of improved vaccination efforts and a decline in the covid-19 cases. Gold futures are down 0.36%, currently trading $1,796.65 an ounce. gold is down 1.77% from last week’s high of $1,829 an ounce and the yellow metal looks set to end the week bearish. the dollar index, which usually moves inversely to gold, is down marginally by 0.01% for the day, currently trading 92.75.
CBN To Launch Digital Currency By October
The Central Bank of Nigeria with its stakeholders outlined its digital currency initiative via a private webinar held today. The Nigerian Central Bank Governor, Godwin Emefiele had earlier announced that the bank will be working on a central bank digital currency during the 306th Banker’s Committee meeting. According to private sources, the pilot scheme will be launched on October 1st, 2021. The press briefing delivered by the Director IT department, Rakiya Mohammed, at the end of the meeting further explained that the Bank had been conducting research in regards to central bank digital currencies since 2017 and may conduct a proof of concept before the end of this year.
The project name is tagged Project GIANT and it will use the Hyperledger Fabric Blockchain. Nigeria’s central bank further revealed that the importance of eNaira includes Macro management and growth, cross border trade facilitation, financial inclusion, monetary policy effectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social intervention.
Oil Holds Biggest Gain In Three Months On Demand Recovery
Oil held its biggest gain in three months amid expectations that recovering demand will soon tighten global markets. west texas intermediate futures traded above $70 a barrel, having recouped much of Monday’s 7.5% collapse. Gasoline use is essentially back to normal in many of the biggest oil-consuming countries, with road traffic data showing a similar trend. the market recovery has spurred China to supply crude from its strategic reserves to local refiners in a bid to cool prices. Crude slumped on Monday in tandem with broader financial markets on fears that the spread of the coronavirus’ delta variant would inflict a fresh blow on the global economy. the variant has ripped through Asia, prompting a flurry of renewed curbs by governments to check its spread. the price plunge came just after a weekend meeting of Opec, at which the 23-nation alliance led by Saudi Arabia and Russia finalized plans to restore halted production.
FG To Boost Trade Export With N50bn Funding
The Nigerian export promotion council is implementing a N50bn export expansion facility programme as part of the economic sustainability plan whose development and implementation is being led by the vice-president, Prof. Yemi Osinbajo. This comes following the official launch of the trade promotion organisations under the auspices of the economic community of west african states. Presidency sources credited executive director /chief executive officer of the nepc, Mr Segun Awolowo, as saying the programme was geared towards increasing the volume of trade within the ecowas region with nigeria poised to boost its non-oil exports. The EEFP is a spin-off of the zero oil plan developed by NEPC under Awolowo and approved by the president, major general muhammadu buhari (retd.)
The UK And France Plan Covid Travel App To Avoid Holiday Chaos – THE TELEGRAPH UK
Britain and France are in talks to roll out a “wallet” travel app to ensure holidaymakers have all the necessary covid documentation before heading to the airport. Grant Shapps, the transport secretary, met his French counterpart Jean-Baptiste Djebbari in Folkestone on Wednesday to discuss using an app developed by the owner of the channel tunnel to avoid chaos at the border. Results of covid testing, and proof of vaccination or herd immunity, are all stored alongside other information required for customers to travel such as passport details.
| Contact details : Judith Idialu ZOCK Capital and Investment LLC 29, Issac John Street, G.R.A ikeja Lagos State Email: info@zockcapital.com |
DISCLAIMER: This publication is strictly for information purposes only for Zock capital and invest LLC and its employees take no responsibility or liability as to the accuracy and completeness of the information.
For further ./enquiries/information on this publication, please contact Research and Economic Intelligence.
