January 13, 2022 FX, Money Market, Fixed Income Summary Report

The naira depreciated by 0.12% and 0.04% to NGN416.50/USD and NGN414.61/USD in the I & E window and the CBN interbank market, while it stayed flat, hovering around NGN568/USD and NGN572/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 USD40.51 billion. We still remain hopeful of an increase due to the huge inflow coming from the increase in crude oil prices despite likely reductions due to CBN FX intervention.

In the money market, the overnight lending rate was depreciated by 150 bps from 15.75% to close at 14.3% following the absence of any significant funding pressure on the system.

The average yield of the NTB secondary market remained unchanged at 4.4%.

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

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

The average yield contracted at the short end by 1 bps, the mid-end by 5 bps, and the long-end by 2 bps following increased demand for the 27-APR-2023, 14-MAR-2024, 17-MAR-2027, 23-FEB-2028, and 18-APR-2037 bonds, respectively.