| BID RATE(Buys) | OFFER RATE(sell | |||||
| USD/NGN | 140.00 | 150.50 | ||||
| GBP/NGN | 205.18 | 227.47 | ||||
| EUR/NGN | 178.46 | 198.83 | ||||
CLOSING USD/NGN FX RATES
| MARKET SEGMENT | BID | OFFER |
| CBN Range | 143.80 | 144.80 |
| INTERBANK | 147.60 | 147.70 |
| SPOT NIFEX | 147.91 | 148.01 |
| CBN Form M | 145.30 |
OTHER EXCHANGE RATES LATEST TREASURY BILL DISCOUNT RATES
| CURRENCY | BID | OFFER |
| EUR/NGN | 178.46 | 199.22 |
| GBP/NGN | 205.18 | 227.92 |
| EUR/USD | 1.2711 | 1.3211 |
| GBP/USD | 1.4614 | 1.5114 |
| USD/JPY | 90.50 | 92.00 |
COMMODITY PRICES
As at 10/02/2009
| OIL (Mar. Fut.) | 39.94. |
| GOLD: | 893.8 |
| COFFEE | 120.75 |
| COCOA (tone) | 2827.00 |
| SUGAR | 13.33 |
| CORN | 376.50 |
| Inflation: (Dec. ‘08) – | 15.10% |
| Yr/Yr monthly – | 11.60% |
| GDP Growth –(2008) | 6.80% |
| Unemployment:- | 5.6% |
| Bud. Def – (Q2’08) | N132.48bn |
| For Reserves – | $50.9bn |
CBN COMPLIANCE REQUIREMENTS
| Liquidity Ratio (Sept. 2008): | 30% |
| Basle Accord (Capital Adequacy): | 10% |
| Reserve Reqmt. Cash: | 2%(Sept.2008) |
ECONOMIC NEWS
The Monetary Policy Committee met yesterday to review the current domestic and international economic and financial developments as they have negatively impacted Nigeria’s external and fiscal positions. The committee then decided to: leave the monetary policy rate unchanged at 9.75%; manage the exchange rate within a band of +/-3%; ensure that the difference between the CBN buying and selling rates shall not exceed 1% while that of banks and BDCs will not go beyond 1% and 2%, respectively around the CBN rate.
Minister of State for Finance, Remi Babalola, revealed that the Federal Government had considered over N70bn bailout for the textile sector which can employ more than 500,000 people. He also reiterated the government’s decision of not bailing out the capital market, despite the pull-out of about N812bn worth of investments by foreign investors from the Nigerian stock market.
The Government has decided to resume work on the various National Integrated Power Projects (NIPPs) in the country after some outstanding logistic and funding issues have slowed down work on those projects.
LOCAL MARKET NEWS
The Money Market closed yesterday at 9.75% and 17.50% on OBB and Overnight respectively. The FX interbank market closed yesterday at N147.60/70 on bid and offer respectively.
INTERNATIONAL MARKET NEWS Update on Global Economic Crisis
Union Bank Switzerland, the largest bank in Switzerland, said it would cut about 1,600 more jobs at its investment bank after it posted a $7bn, loss in the fourth quarter, as a result of write-downs related to the credit crisis.
France announced a €6.5bn sweeping plan to support its automobile industry. PSA Peugeot Citroen and Renault, the two largest French carmakers, will each get a five-year loan of €3bn at an interest rate of 6%, while Renault Trucks, which is owned by Volvo of Sweden, will receive €500m. The funds will be used to invest in clean technology, while the companies are also to ensure non-closure of production sites for the duration of their loan and to do whatever they can to avoid layoffs.
Commodity Market
Dollar and yen gained today after Russian banks asked for government’s help in restructuring $400b of loans with foreign banks. On the other hand, markets are circulating speculations that the so called “bad-bank” will not be included in the financial rescue package even though there are still measures to remove toxic assets from banks’ balance sheets.
Commodity Market
Crude oil continues to trade with a soft tone at around $40 a barrel. Crude oil price has slumped by more than $100 since its record high of $147.27 a barrel in July 2008.
RELATIONSHIP BETWEEN CBN MONETARY POLICY RATE (MPR) AND INFLATION RATE IN NIGERIA
| PERIOD | INFLATION (%) | MPR (%) |
| Jan ‘08 | 8.6 | 9.5 |
| Feb ‘08 | 8 | 9.5 |
| Mar ‘08 | 7.8 | 9.5 |
| Apr ‘08 | 8.2 | 10 |
| May ‘08 | 9.7 | 10 |
| Jun ‘08 | 12 | 10.25 |
| Jul ‘08 | 14 | 10.25 |
| Aug ‘08 | 12.4 | 10.25 |
| Sep ‘08 | 13 | 9.75 |
| Oct ‘08 | 14.7 | 9.75 |
| Nov ‘08 | 14.8 | 9.75 |
| Dec ‘08 | 15.1 | 9.75 |
“In much knowledge there is also much grief.”
Queen Marie of Romania.