January 11, 2022 FX, Money Market, Fixed Income Summary Report

The naira depreciated by 0.1% and 1.24% to NGN416.50/USD and NGN572/USD in the I&E window and the parallel market respectively, while CBN interbank market, stayed flat at NGN414.14/USD.

Inflation figures from the Nigerian Bureau of Statistics (NBS) still stayed at 15.40% as we await an updated figure from the agency, while the Monetary Policy Rate (MPR) stayed at 11.50%.

The gross external reserve stayed at USD40.53 billion. We still remain hopeful of an increase due to the huge inflow coming from the increase in crude oil prices.

In the money market, the overnight lending rate was depreciated by 25 bps from 14.75% to close at 14.5% following the absence of any funding pressure on the system.

The average yield of the NTB secondary market contracted marginally at 2bps to 4.4%, albeit with a bullish focus.

Across the curve, the average yield declined at the short end due to demand for the 80DTM bill; yields were unchanged at the mid and long segments.

Similarly, the average yield stayed flat at 5.5% in the OMO segment.

Trading in the treasury bond secondary market ended slightly bearish as the average yield stayed at 11.4%.

The average yield contracted at the short end by -15bps to close at 11.35%, following investors’ demand for JAN-22-2026, while at the mid and long end, the yield stayed flat.