FBNQuest Capital FI-FX Daily Watch 23 July 2018

FBNQuest Capital FI-FX Daily Watch 23 July 2018

Opening market liquidity on Friday was N468bn (positive). Interbank rates closed within a range of 15% to 19%. On the NTB secondary market, there was an uptick in yields at the shorter end.

The FGN bond market was relatively quiet, and yields dipped for selected maturities across the curve. As for the Eurobond market, yields narrowed for maturities under our coverage.

The CBN’s daily fx intervention was again US$0.5m, at N305.35. Additionally, there was a retail fx SMIS. Apart from the usual offer in USD, the CBN (for the first time) also offered Chinese Yuan (CNY) for sale. The intervention in CNY was for the payment of renminbi-denominated LCs for raw materials & machines as well as agriculture. Turnover at the NAFEX decreased from US$220m on Thursday to US$116m. Indicative rates ranged from N350 to N363. Reports from a wide range of US companies point to growing concerns about the impact of a full-blown trade war.

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