Zeal Akaraiwe: CBN’s New System Removes Market Cling, Enhances Transparency and Boost Naira’s True Value

CEO of Graeme Blaque, Zeal Akaraiwe, has discussed the Central Bank of Nigeria’s (CBN) newly integrated system and its potential impact on the naira’s future, offering insights into increased market transparency and a positive outlook for 2025.

Akaraiwe, in an interview with Arise News on Monday clarified common misconceptions about the system, emphasising that it was not a new development, but an enhancement of existing practices.  

“There has always been a system, but a lot of people think this is the first time the Central Bank is using a system,” Akaraiwe explained. 

“This system is different in that it gives both the authorised dealers and the Central Bank more visibility and more information. 

“It introduces better price transparency, and the information and symmetry that had been clinging the market over the last year have been removed.”  

Akaraiwe highlighted the operational efficiency of the new system, which allows for more transparency in market activities. 

“What the system does is that it looks at everybody’s bid and offer and then picks the best bid, and that’s what the market rate is, and everybody sees it,” he said. “It also lets you see volumes, which the former system wasn’t doing.”  

He stressed the importance of transparency in financial markets, asserting that it is crucial for accurate price discovery, regardless of the accepted class.

 “For financial markets, it doesn’t matter the accepted class; transparency is a crucial factor in price discovery,” Akaraiwe added.  

Turning to the outlook for the naira in 2025, Akaraiwe pointed to remarks made by the CBN Governor about the undervaluation of the naira.

 “The Central Bank Governor has consistently said the naira is undervalued, and I think he has more information about the market than anybody,” Akaraiwe said. 

“What I should do is challenge a lot of the economically inclined journalists out there. 

He concluded by saying “We are in a significantly superior position, so the question is, if the exchange rate was that, and it is here now, what would be the outlook as things are improving?”

Boluwatife Enome

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