February 22, 2022 FX, Money Market, Fixed Income Summary Report

The naira stayed flat at NGN416.67/USD, NGN416.37, NGN573 in the I & E exchange window, the CBN window, and the parallel market respectively.

The overnight lending rate contracted by 633bps to 6.3%, as the inflow from OMO maturities (NGN227.20 billion) improved overall system liquidity.

The overnight lending rate fell by 633 basis points to 6.3 percent, as inflows from OMO maturities (NGN227.20 billion) increased total system liquidity.

The external reserve, MPR/Lending Rate, and inflation rate remained constant at $39.78 billion, 11.50 percent, and 15.60 percent, respectively.

The NTB secondary market remained calm, with the average yield remaining constant at 4.2 percent. Similarly, the average yield in the OMO market remained steady at 5.3 percent.

The secondary market for Treasury bonds was upbeat, with the average yield falling 13 basis points to 11.0 percent.

Across the benchmark curve, the average yield increased at the short (+1bp) end when investors sold the MAR-2025 (+42bps) bond, but contracted at the mid (-38bps) and long (-6bps) ends as market participants demanded the FEB-2028 (-42bps) and JUL-2034 (-34bps) bonds, respectively.