Naira Weakens As The CBN Opens Another Investigation Into Corporates’ FX Dealings

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -


Indicator Value Commentary
Inflation 13.22% As at August 2020. A 40bps increase from 12.82% recorded in July 2020
MPR 12.50% MPC Meeting scheduled for September 21 & 22nd, 2020
External Reserves $35.81bp As at Sep. 17, 2020. A c.0.02% increase from $35.81bp on Sep. 16, 2020
Brent Crude $41.42pb As at Sep. 21, 2020. A c.4.01% decrease from $40.90pb on Sep. 18, 2020


FGN Bonds

It was a quiet start to the week in the FGN Bonds market as market participants pin their focus on the bi-monthly MPC meeting as well as the monthly FGN Bond auction slated for the week. Despite the generally quiet session, we still noted some pockets of the demand at the short- (2023s), mid- (2025s and 2027s), and long-end (2034s, 2049s, and 2050s) at close to offer levels. Consequently, yields compressed by c.5bps on the average across the benchmark bond curve.

We expect the market to remain calm opening tomorrow as well ahead of the MPC Communique. Clients are still expected to cherry-pick across the curve as ahead of the continued inflow of FGN Bond coupon payments (c.N24BN expected this week).

Benchmark FGN Bonds
Description Bid (%) Offer (%) Day Change (%)
16.39 27-Jan-22 5.00 3.10 0.00
12.75 27-Apr-23 5.00 3.82 (0.40)
14.20 14-Mar-24 5.00 3.75 (0.25)
13.53 23-Mar-25 5.55 4.60 0.00
12.50 22-Jan-26 6.60 6.30 0.00
16.29 17-Mar-27 7.70 7.40 0.00
13.98 23-Feb-28 7.90 7.70 0.05
14.55 26-Apr-29 8.18 7.90 0.00
12.15 18-Jul-34 9.80 9.55 0.00
12.40 18-Mar-36 9.90 9.60 0.00
16.2499 18-Apr-37 9.90 9.75 0.00
14.80 26-Apr-49 9.98 9.90 0.00


Treasury Bills
- Advertisement -

The hunt for yield by local banks continued today, as rates continued to drop across most traded securities especially at the long=end of the OMO curve. Long-dated papers (August maturities) traded within the 2.70—2.80 range as supply at that end remains thin. Consequently, rates dropped by c.19bps on the benchmark OMO curve.

We expect the market to remain bullish supported by current system liquidity levels. With OMO maturities of c.N300BN expected later this week, rates could crash as low as mid-2% levels as the bullish train continues.

Benchmark OMO Bills
Description Bid (%) Offer (%) Day Change (%)
NGOMO 10/1/2020 3.00 0.01 0.00
NGOMO 11/03/2020 3.00 0.01 0.00
NGOMO 12/01/2020 3.00 0.01 0.00
NGOMO 01/05/2021 4.00 0.01 (1.00)
NGOMO 02/02/2021 4.00 0.01 (1.00)
NGOMO 03/02/21 5.00 0.01 0.00
NGOMO 05/11/21 5.00 0.01 0.00
NGOMO 06/08/21 5.00 0.01 0.00
NGOMO 08/10/21 5.00 0.01 0.00
Benchmark NTBills
Description Bid (%) Offer (%) Day Change (%)
NIGTB 10/1/2020 2.00 0.01 0.00
NIGTB 11/12/2020 2.00 0.01 0.00
NIGTB 12/31/2020 2.00 0.01 0.00
NIGTB 01/14/2021 3.00 0.01 (0.50)
NIGTB 02/11/2021 3.00 0.01 (0.50)
NIGTB 04/29/2021 4.00 0.01 0.50
NIGTB 05/13/21 4.00 0.01 0.00
NIGTB 06/10/21 4.00 0.01 0.00
NIGTB 07/01/21 4.00 0.01 0.00
NIGTB 08/26/21 4.00 0.01 0.00


Money Markets

Interbank rates remained low, supported by excess system liquidity levels. The markets opened c.N533BN, 146% higher than the previous session, pushing rates down to close at 1.00% and 2.00% for OBB and OVN rates respectively.

- Advertisement -

We expect rates to remain low this week as FGN Bond coupons of c.N24BN and OMO maturities of N300bn drop later in the week.

Read Also:  Nigerian Breweries Plc 9M-19: …Marred by weak earnings amid increased excise duty
Money Market Rates
  Current (%) Previous (%)
Open Buy Back (OBB) 1.00 2.00
Overnight (O/N) 2.00 3.00


FX Market

It was an active day for the Apex regulator as another list of 71 additional companies under investigation by the CBN came out today. This development follows 2 of such investigations launched by the CBN in August earlier this year.

Despite this development, the lack of supply again hit the FX markets today as rates weakened again in the parallel market. Cash and transfer rates lost an average of N1.50k to close higher at N465.00/$ and N478.00/$ respectively.

FX Market
Current (N/$) Previous ( N/$)
CBN Spot 379.00 379.00
CBN SMIS 380.69 380.69
I&E FX Window 386.00 386.00
Cash Market 465.00 464.00
Transfer Market 478.00 476.00
- Advertisement -



It was a blood-red session across the Sub-Saharan African Eurobond space, with sell-offs seen on most major names including the NIGERIA Sovereigns. This weakness comes as investors worry about COVID-19 surging in Europe again and dropping oil prices.  Yields expanded by c.30bps across the sovereign curve in a generally weak session.

Read Also:  Naira Further Depreciates against the USD at the BDC, Parallel Markets

The NIGERIA Corporate papers have so far been spared of the onslaught, save for the FIDBAN 2022s which lost c.26bps on its closing yield.

We expect the sell-off to expand to other names, as investors look to protect their portfolios in the light of these weak sentiments.



Naira Weakens As The CBN Opens Another Investigation Into Corporates’ FX Dealings - Brand Spur


Lagos Business School Beta Gamma Sigma chapter earns Highest Honours status

The Lagos Business School chapter of the Beta Gamma Sigma society has been bestowed the Highest Honours status for the 2019-2020 academic year. The Highest Honours status is the highest distinction possible for Beta Gamma Sigma chapters.

Nestlé to plant 3 million trees by 2023 in Malaysia

Nestlé today announced it will plant three million trees through Project RELeaf in Malaysia. Nestlé will invest CHF 4 million in the next three years. This announcement is part of Nestlé’s broader reforestation initiative. It will help accelerate the company’s global pledge to address climate change and achieve zero net greenhouse gas emissions by 2050.

Nestlé S.A. Increases Stake in Nigeria Subsidiary

Nestlé S.A, Switzerland, the parent company of Nestlé Nigeria Plc, has increased its ownership percentage of the Nigerian subsidiary to 66.30 per cent.

Waltersmith Refinery Ready for October Start

Waltersmith Petroman’s modular refinery has been completed and will begin operations on October 14, the Nigerian Content Development and Monitoring Board (NCDMB) has said.

How TikTok Changed Video Advertising Forever?

Owning a business brand isn’t all required to make it big in the business world – it’s just the first step. To achieve business growth, you’d have to invest in activities that improve the quality of your products and services and make potential buyers aware that you have what they need.

Olam Cocoa launches new business for professional chefs, bakers and pâtissiers

Olam Cocoa has today announced the launch of Olam Cocoa for Professionals, a new business which will make its premium deZaan cocoa powders available to restaurants, caterers, and patisseries for the first time.

- Advertisement -
Naira Weakens As The CBN Opens Another Investigation Into Corporates’ FX Dealings - Brand SpurNaira Weakens As The CBN Opens Another Investigation Into Corporates’ FX Dealings - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Naira Weakens As The CBN Opens Another Investigation Into Corporates’ FX Dealings - Brand SpurNaira Weakens As The CBN Opens Another Investigation Into Corporates’ FX Dealings - Brand Spur

Latest News

Allianz Risk Barometer 2021: Covid-19 trio tops global and Asia Pacific business risks

10th Allianz survey: Business interruption, Pandemic outbreak and Cyber incidents are the top three global business risks for 2021 -- all strongly interlinked. Globally, Pandemic...

VP Bank in Singapore Awarded Best Private Bank in Asian Private Banker Awards for Distinction 2020

HONG KONG SAR - Media OutReach - 18 January 2021 - VP Bank Ltd Singapore Branch has been awarded 'Best Private Bank --...

Amazon to host first Southeast Asia Seller Summit for small and medium-sized businesses to Start Local, Go Global

The two-day complimentary virtual event focuses on empowering small and medium-sized businesses to develop strategies and skills to reach more customers locally and globally SINGAPORE...

PropertyGuru Tackles Top Home Loan Refinancing Misconceptions Among Singaporeans in New Research

45% of Singaporeans feel unwise to refinance within lock-in period, a top home loan misconception hampering opportunities to save money  SINGAPORE - Media OutReach - 18 January...

Local Equities Market Falls by 0.23% amid Renewed Bearish Activity

Nigeria’s equities benchmark index fell today by 0.23% to 40,963.14 points. Year to date return and market capitalization settled at 2.02%, and N21.41 trillion...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Naira Weakens As The CBN Opens Another Investigation Into Corporates’ FX Dealings - Brand SpurNaira Weakens As The CBN Opens Another Investigation Into Corporates’ FX Dealings - Brand Spur