Weekly Market Insights: Global Trends and Local Implications
- System liquidity dipped last week due to significantly lower inflows from maturing instruments.
- The system is expected to receive a strong liquidity buffer this week, with total inflows estimated at N3.26 trillion.
- OMO maturities account for roughly 40% of total inflows, while FGN bond maturities contribute about 32%, highlighting the dominance of public-sector instruments.
- Nearly 40% of FGN bond maturities this week are concentrated in the 12.50% FGN JAN 2026 issue maturing on 22nd of January.
- Market participants should closely monitor the reinvestment pattern, as the size and concentration of inflows could elevate FX demand and put short-term pressure on the naira.
- Oil prices moved higher during the week as escalating geopolitical tensions raised concerns that as much as 4.6 mbpd (4.5%) of global oil supply could be affected by disruptions.
- If the current trend persists, the naira may find some support, although risks remain.
