Graeme Blaque Group CEO on the state of the naira & CBN’s increased FX market surveillance

The Naira has been on a downward spiral against the dollar at the parallel forex market, despite efforts by the Central Bank of Nigeria (CBN) to increase FX supply to meet legitimate demand and curb speculative demand that has been putting pressure on the local currency. In a recent interview on CNBC Africa, Zeal Akaraiwe, CEO of Graeme Blaque Group, shared his insights on the current state of the Naira and the effectiveness of the CBN's tactics. Akaraiwe discussed the pros and cons of the CBN's recent strategies and the impact on the Nigerian economy. The continuous weakening of the Naira has raised concerns among analysts and investors, with the Naira hitting a new low of 575-580 against the dollar. Akaraiwe highlighted the challenges faced by the CBN in managing the exchange rate and the implications for the country's external reserves. Despite the criticism faced by the CBN Governor, Akaraiwe noted the complexities of the situation and the need for a comprehensive approach to address the root causes of the Naira's depreciation. He emphasized the importance of fostering confidence in the investor community and adopting transparent communication to navigate the current economic challenges. Furthermore, Akaraiwe delved into the debate on exchange rate policies, advocating for a balanced approach that takes into account the dynamics of the forex market and the need for sustainable solutions. He cautioned against extreme measures such as fixing or free-floating the Naira, stressing the importance of finding a middle ground to stabilize the exchange rate. As Nigeria prepares for the Euro bond issue, Akaraiwe pondered on the government's response to foreign investors' inquiries about the Naira and the forex market. He highlighted the significance of sincerity and credibility in engaging with investors and addressing their concerns to maintain trust and attract foreign investments. Akaraiwe's analysis sheds light on the complexities of Nigeria's economic challenges and the critical role of effective policy measures in safeguarding the Naira's stability and fostering economic growth.