#fdcexplains the effect of treasury single account on the nigerian economy.pptx
TRANSCRIPT
+ Impact of the Treasury Single Account
on Economic Activity
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+ Glossary of Terms
• The Federal Accounts Allocation Committee is responsible for the distribution of revenue accruing to the Federation Account between the Federal and State Governments and Local Government.
FAAC:
• A Treasury Single Account is a public accounting system under which all government revenue, receipts and income and collected into one single account, usually maintained by the country’s Central Bank. The aim of this is to ensure that governments cashflows are properly managed
TSA:
• Assets that can easily be converted to cash e.g bonds Quasi Money:
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+ Total Money Supply (M2): N18.42trn
Cash: N1.18trn
Current Accounts: N5.28trn
Quasi Money: N11.95trn
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+ Treasury Single Account (TSA)
Total Banking system liquidity: N12trn
Government Money = N1.2trn
10% of liquidity
Approximately 2 months FAAC
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+ Implications (1/2)
IMPACT
POSITIVE NEGATIVE
Exchange Rate
Unemployment
Bank Profitability
Manufacturing
Inflation
Stock Market
Real Estate
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+ Implications (2/2)
Short term interest rates 10.95% will increase
The naira (N224/$) will appreciate
The stock market YTD (-12.37%) will decline
Borrowing costs, approx. 23% p.a will jump
Total unemployment 26.5% - will spike
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