Banking and Finance

Purchasing Managers Index Readings at All Time High

The CBN’s Purchasing Managers’ Index (PMI) report for December, which was released last week, indicated an expansion in both Manufacturing and Non-Manufacturing sectors. The sustained improvement in PMI readings cannot be dissociated from the launch of the Investors’ & Exporters’ (I&E) FX window in April 2017, as this spurred improved liquidity and stability in the FX market against the backdrop of increased oil prices and higher external reserves.

Nigeria Raises ₦162b at Treasury Bill Auction

Nigeria raised 161.54 billion naira ($513.64 mln) at a treasury bill auction on Wednesday after it received subscriptions for more than twice the amount on offer, traders said on Thursday.

The central bank sold 115.85 billion naira of one-year debt at a rate of 14.30 percent. It auctioned 11.77 billion naira and 33.93 billion naira respectively in three- and six- months maturities at 12.54 percent and 13.92 percent. Total subscription stood at 388.50 billion naira.

Foreign Exchange Reserves up 10% –CBN

Nigeria’s foreign exchange reserves stood at $37.92 billion as of Dec. 22, up 10.1 percent from a month earlier, central bank data showed on Friday, according to Reuters report.

The government raised $3 billion in Eurobonds in November.

Nigeria’s forex buffer has climbed nearly 50 percent since last December but is still far off a peak of $64 billion hit in August 2008.

Lawmakers to Probe CBN Over Non Remittance of Revenue

The Nigerian House of Representatives is to investigate an alleged non-remittance of over $5 billion about N1.53 trillion into the federation account by the Central Bank of Nigeria.

To that effect, the lawmakers have resolved to set up an adhoc committee to investigate the alleged infraction by the country’s apex bank, the Voice of Nigeria reports.

FG will Reduce Borrowing Cost –Debt Office

Photo L-R: Mr. Aruna Jalo-Waziri, Managing Director/CEO, Central Securities Clearing System (CSCS) Plc; Mr. Tony Ibeziako, Ag. Capital Market Division, The Nigerian Stock Exchange (NSE); Mr. Oscar Onyema, Chief Executive Officer, NSE; Ms Patience Oniha, Director General, Debt Management Office (DMO) and Mr. Oladele Afolabi, Director Portfolio Management, Department, DMO during the Facts Behind the Listing of FGN Diaspora Bond and Eurobond Issuances at the Exchange today.

Treasury Bills Extend Rally as Sell-off, new Issues Weigh

Yields on Nigeria’s mid-dated treasury bills rose nearly 1 percentage point to 12 percent on Friday, extending a three-day rally as a sell-off which started this week continued, traders said.

The Debt Management Office (DMO) repaid 131.42 billion naira ($429.13 million) worth of treasury bills on Thursday instead of rolling them over, thereby slightly reducing its debt and debt-servicing costs for the government.

It also plans to repay 66.62 billion naira on Dec. 21.

Nigeria Repays $1.1b worth of T-bills; Overnight Rates fall

Nigeria’s central bank repaid a total of 340 billion naira ($1.1 bln) worth of treasury bills on Thursday instead of rolling them over, in a move to lower government borrowing costs, traders told Reuters.

They included 131.4 billion naira worth of treasury bills issued by the Debt Management Office (DMO), while the balance was in open market bills issued by the central bank.

The DMO has said it will repay treasury bills maturing on Dec. 14 and Dec. 21 totalling 198.03 billion naira.

Banks Trade FX at ₦314.50 on Interbank Market

Nigeria’s foreign exchange market saw transactions worth $1.34 million at its interbank window on Wednesday at a rate of 314.50 naira per dollar, as commercial banks traded the local currency at below the central bank rate.

The central bank has used a rate of around 306 to supply dollars to banks since it introduced a multiple exchange rate system in February.

CBN Injects $210m into Currency Market

Nigeria’s central bank said on Tuesday it had injected $210 million into the interbank foreign exchange market, extending efforts to boost liquidity and alleviate dollar shortages.

The bank said in a statement it had released $100 million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills.