Analyst Insight: A Small Rise in the FGN’s Domestic Debt in Q3 2020

FGN's Domestic Debt

Analyst Insight: A Small Rise in the FGN’s Domestic Debt in Q3 2020 FBNQuest Research   The FGN’s domestic debt stock amounted to NGN15.85trn (USD37.7bn at the recently adjusted NAFEX rate) at end-September, equivalent to 10.0% of 2019 GDP. It increased by NGN390bn over the quarter, and the stock of FGN bonds by NGN410bn. The DMO had a challenging remit to raise NGN1.6trn from domestic issuance as FGN deficit financing in 2020, and the bonds are by far the largest element in its programme. Its timely data update also shows…

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Fixed income yield continue to weaken as market appetite wither

Fixed income yield continue to weaken

Fixed income yield continue to weaken as market appetite wither By Zedcrest Analysts _________________ FGN Bonds The FGN bond market continued on its sluggish note, opening and trading on a very drab note. The belly of the curve weakened aggressively, sliding another 40bps D/D. We saw better offers for 2034s-2037s paper and a few trades printed for the 2035s,2036s, and 2037s maturities with the range of 7.40%-7.60%. Offers were also bettered for the 2034s paper at the 7.50% level but were met with a rather far bid making it challenging…

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Market appetite for fixed income securities remains weakened

Fixed income yield continue to weaken

Market appetite for fixed income securities remains weakened   FGN Bond The FGN bond space market appetite for bonds dampened on Saturday compared to Friday, ending the week on a rather drab note, Analysts at Zedcrest have noted. While rates continue to improve across the curve, market participants remained on the side-lines, cherry-pick on few bonds, particularly the long-dated bond. “We saw a few trades print on the 50s maturities at the 7.50 per cent levels. Despite the less active market, yields compressed by an average of 5 basis points…

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DISCLAIMER: CBN exposes 2 unathorised International Money Transfer Operators

International Money Transfer Operators

DISCLAIMER: CBN exposes 2 unathorised International Money Transfer Operators   The Central Bank of Nigeria (CBN) has warned the general public to beware of two firms – Azimo and Transfer Wise – that operate as International Money Transfer Operators (IMTOs), saying the two firms are not licensed to carry out the business. In a statement titled ‘Azimo, Transfer Wise Not Registered IMTOs’ published on its official website on Wednesday and signed by Osita Nwanisobi Acting Director, Corporate Communications, the apex bank said the duo have been carrying out illegal transactions.…

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Mixed sentiments at the FX, fixed income market

Fixed income yield continue to weaken

The Nigeria’s fixed income market closed amidst mixed sentiments on Wednesday as performances vary from the forex to the treasury bills and the bond markets. Foreign Exchange market The CBN official exchange rate closed at N379 to a dollar, while the street market rate closed at N476 to the dollar and at the Importers’ & Exporters’ (I&E) forex market, the naira weakened by 0.17 per cent as the dollar was quoted at N394.67 as against the last close of N394. However, most participants maintained bids of between N385 and N408.84…

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Mixed trends at FX, fixed income markets

Fixed income yield continue to weaken

FX market The naira accelerated its decline against the dollar by N7 to trade at N494 per dollar on Thursday, bringing the week to date depreciation to N11 from N483 per dollar in the parallel market. However, the local currency remained flat and stable at N393.25 per dollar at the I&E FX market. Most participants maintained bids between N383.00 and N395.00 per dollar. Treasury bills Despite the low yield environment prevailing in the NT-Bills market, investors were willing to buy up to N445.94 billion due to the abundant system liquidity…

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CBN disburses $13.99bn defending naira in H1’ 2020

CBN disburses $13.99bn defending naira in H1’ 2020

In a bid to strengthen the local currency, Naira, the Central Bank of Nigeria (CBN) supplied $13.99 billion into the market between January and June. The bank disclosed this in its quarterly statistical bulletin on ‘Supply of forex’ for the month of June. According to the CBN, the forex were supplied to the interbank segment, the Bureau De Change operators, and also the Investors & Exporters window, Small and Medium Enterprises and invisibles. It disclosed that $122.9 million, $63.2 million, $2 million, $62.12 million, $55.89 million and $68.86 million were…

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Analysts: Nigeria may return to Eurobond market in 2021

Amidst foggy global economic realities caused by the coronavirus (Covid- 19) pandemic-induced crisis, analysts at Coronation Research have said that Nigeria will likely return to the Eurobond market next year. The analysts, who made the prediction in a note obtained Business Metrics, argued that Nigeria’s position was better than those of some other African countries, such as Zambia and Angola, which have recently sought to restructure private -sector debt, including Eurobonds. The analysts noted that although there was a rise in Eurobond yields a fortnight ago, with Zambia’s 2027 Eurobond…

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FG September bonds oversubscribed by 148% as investors stake N360.22bn

The Debt Managemy Office (DMO) has disclosed that the federal government’s bonds for the month of September worth N145 billion have enjoyed over 148 per oversubscription as they were auctioned on Wednesday. Specifically, the DMO indicated that the bonds were oversubscribed by N215.22 billion, as the total subscription received from investors for the bonds was N360.22 billion. These comprised of N83.83 billion for 12.5 per cent FGN January 2026 bonds; N71.4 billion for 12.5 FGN March 2035 bonds; N41.06 billion for 9.8 per cent FGN July 2045 bonds; and N163.93…

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Naira: The Journey towards Exchange Rate Convergence

CBN resumed dollar to BDC

By Vetiva Analysts In line with how the COVID-19 pandemic is spurring a new normal in business and economy, the Central Bank of Nigeria (CBN) is gradually embracing agelong reforms in the country’s foreign exchange (FX) market. For many years, international financial institutions, such as the International Monetary Fund (IMF), have expressed displeasure with the country’s FX restrictions and multiple currency practices (MCPs). One of such MCPs is the gap between the official exchange rate and the other unofficial rates, that exceeded the 2% divergence guideline. The large gap between…

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