Weekly Market Insights: Global Trends and Local Implications
- Average net system liquidity declined by over 50% week-on-week, reflecting significantly lower inflows compared with the prior week.
- Liquidity inflows are expected to remain subdued this week, with only about N1.01 trillion projected from maturities.
- OMO maturities account for roughly 98% of total inflows, suggesting limited immediate impact on the naira given likely reinvestment behaviour.
- Market indicators broadly improved, with softer interbank rates, a firmer naira, rising oil prices and positive equity performance, alongside easing yields in parts of the fixed-income market.
- Oil prices remain highly sensitive to developments around U.S.–Iran tensions, reacting quickly to signs of escalation or de-escalation.
- Nigeria’s potential inclusion in JPMorgan’s frontier local-currency debt index could attract rule-based FX inflows into Nigerian bonds, driven by index weightings rather than discretionary investor decisions.
