CLOSING USD/NGN FX RATES
| MARKET SEGMENT | BID | OFFER |
| CBN Range | 144.90 | 145.85 |
| SPOT NIFEX | 145.90 | 145.90 |
| CBN Form M | 144.85 |
ECONOMIC NEWS
Sequel to the recommendations of the Steering Committee on the Global Economic Crisis, the Federal Government has finally approved the full deregulation of the petroleum sector to end the era of subsidy for inefficient and fraudulent operations.
About N640bn was spent to subsidize petroleum products last year alone, yet leakages continue in a system characterized by corruption and inefficiency, which showed that the whole system has been compromised.
MONEY MARKET
| INTERBANK RATES | % | LIBOR RATES ($) |
%
|
| CALL | 16.79 | 1 M LIBOR | 0.49 |
| 7 D NIBOR | 17.54 | 2 M LIBOR | 0.96 |
| 30 D NIBOR | 17.75 | 3 M LIBOR | 1.26 |
| 60 D NIBOR | 18.17 | 6 M LIBOR | 1.80 |
| 90 D NIBOR | 18.29 | 1 Y LIBOR | 2.12 |
OTHER EXCHANGE RATES
| CURRENCY | BID | OFFER |
| EUR/NGN | 181.63 | 190.38 |
| GBP/NGN | 204.67 | 214.88 |
| EUR/USD | 1.2561 | 1.3061 |
| GBP/USD | 1.4028 | 1.4728 |
| USD/JPY | 97.50 | 99.00 |
LATEST TREASURY BILL DISCOUNT RATES
| TENOR | RATE (%) |
| OBB (Call Repo) | 9.50 |
| 91-day T-bill (Primary Mkt) | 1.898 |
| 182-day T-bill (Primary Mkt) | 2.588 |
| 7-year FGN Bond (Primary Mkt) | 9.20 |
| MPR (Effective Sep. ‘08 ) | 9.75 |
COMMODITIES
| OIL (OPEC) | 42.93 |
| COCOA | 2380.00 |
| COFFEE | 112.50 |
| CORN | 365.25 |
| SUGAR | 13.82 |
| GOLD | 943.90 |
ECONOMIC DATA
| Inflation: (Jan. ‘09) | 14.0% |
| Yr/Yr monthly | 12.0% |
| Unemployment:- | 5.6% |
| GDP Growth –(’08) | 6.80% |
| Foreign Reserves | $50.9bn |
| Bud. Def – (Q2’08) | N132.48bn |
COMPLIANCE REQUIREMENT FOR BANKS IN NIGERIA
| Liquidity Ratio (Sept. ‘08) | 30% . |
| Basle Accord (Capital Adequacy) | 10% |
| Reserve Reqmt:- Cash (Sept.2008) | 2% |
ECONOMIC NEWS
Sequel to the recommendations of the Steering Committee on the Global Economic Crisis, the Federal Government has finally approved the full deregulation of the petroleum sector to end the era of subsidy for inefficient and fraudulent operations. About N640bn was spent to subsidize petroleum products last year alone, yet leakages continue in a system characterized by corruption and inefficiency, which showed that the whole system has been compromised.
The Federal Government has ordered an investigation into the health of Nigerian banks. The government will use the outcome of this investigation, to know the resource and mechanism required for a bail out of the banks if necessary. The Central Bank and some others have said the banks were healthy and do not require any bail out, while many others believe that there is systemic weakness in the banking system and especially, the growing failure of the banks to lend to themselves as a clear sign that all is not well. Russian gas giant Gazprom, hopes to finalize a $2.5bn deal with Nigeria’s state-owned NNPC before the end of March this year. The two firms are negotiating a 50/50 joint venture, with most of the investment going towards gas development. The two firms entered into a MoU in September 2008.
LOCAL MARKET NEWS
The Money Market closed yesterday at 9.50% and 20.00% on OBB and Overnight rates respectively.
INTERNATIONAL MARKET NEWS Update on Global Economic Crisis
President Obama proposed a 10-year budget yesterday that reflects his determination in the face of recession to invest trillions of dollars and his own political capital in reshaping the nation’s priorities. The president projects a budget for the 2010 fiscal year of nearly $3.6trn. He says he would shrink annual deficits, now at levels not seen in six decades, mostly through higher revenue from rich individuals and polluting industries, by reducing war costs and by assuming a rate of economic growth by 2010. However, none of the new taxes and other sources of revenue would take effect until the economy recovers.
The U.S. Treasury Department reached a deal to take a stake of 30% to 40% in Citigroup as part of a third bailout of the embattled bank although Vikram Pandit, the chief executive, will remain at the helm. Under the terms of the deal, the Treasury Department has agreed to convert a portion of its preferred stock investment in Citigroup into common stock. The Treasury Department will match the private investors’ conversions dollar-for-dollar up to $25bn. The details of the deal are still being worked out.
Commodity Market
The OPEC basket of twelve crude oil prices rose by $2.43 to close at $42.93 a barrel yesterday, compared to its closing price of $40.50, the previous day. “All wish to possess knowledge, but few, comparatively speaking, are willing to pay the price.”
Juvenal.