TSA: Do Not Panic, Emefiele Tells Banks, Investors

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Godwin Emefiele CBN Governor

Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, has ruled out further devaluation of the naira and told investors and banks not to panic about the government moving its funds to the central bank, a move that has drained about N1.2 trillion from the financial system.

In an interview with newsmen, Emefiele said he was ready to inject liquidity if needed into the interbank market, which dried up this week following a directive to government departments to move their accounts into a Treasury Single Account (TSA) at the central bank.

The TSA is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.

The policy is part of President Muhammadu Buhari drive to fight corruption, but analysts said it could suck up as much as 10 per cent of banking sector deposits in Africa biggest economy hammering banks liquidity ratios.

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