Nigeria Deposit Rate Guide: Nigeria Treasury and Market Report
Exchange Rate Naira to Dollar: CBN Range- Bid/ 144.75; Offer/145.75
ECONOMIC NEWS
Stock broking firms have called on the Federal Government to inject liquidity into the capital market to stem the effect of the global
economic crisis and save the market from imminent collapse. The stock broking firms, under the aegis of the Association of Stock broking Houses of Nigeria, emphasized that this was necessary if the market activities, which began to pick up recently must continue on a positive note.
Hopes of improved electricity supply in the country were rekindled on Saturday, April 4th, 2009 as Utorogu Gas Plant operated by the Anglo-Dutch energy giant, Shell Petroleum Development Company, resumed operations. The closure of the gas plant, located in Ughelli, Delta State, on Wednesday, April 1st 2009 led to a drop in the power supply to the national grid by 700 megawatts.
The SPDC facility supplies 145million standard cubic feet of gas per day through the Nigerian Gas Company, a subsidiary of the Nigerian National Petroleum Corporation in Delta State, to the Power Holding Company of Nigeria.
The shutdown of the plant was caused by the vandalisation of the pipelines by yet-to-be identified persons on Wednesday.
LOCAL MARKET NEWS
The Money Market which opened last week with OBB and Overnight rates at 8.5% and 12% and closed at 9.75% and 16% respectively. The stop rates for 147-day and 189-day
OMO auction was 3.45% and 4% accordingly.
INTERNATIONAL MARKET NEWS
Update on Global Economic Crisis
European producer prices fell more than economists forecast in February, highlighting the increasing risk of deflation in the region. Factory-gate prices in the euro region fell 1.8 percent from the year-earlier month, the most since April 1999. Economists had forecast a 1.5 percent decline, according to the median of 21 estimates in a Bloomberg News survey. Retail sales dropped for a ninth month, a separate report showed.
The deepening of the global slump and a 60 percent drop in oil prices from a July record have eased inflation pressures across the euro area. The economy may shrink as much as 4.1 percent this year.
Commodity Market
Gold dropped to a 10-week low in London on speculation the world financial crisis may be easing, reducing the precious metal’s appeal. However, gold may rebound this week on speculation rising prices of goods will revive demand for bullion as an inflation hedge.