Market News

By Jide Ajia

Total turnover in the Nigerian foreign exchange market rose sharply by 146.12 per cent to $5.05bn for the week ended 21 August 2026.

Data from FMDQ Securities Exchange on Friday showed that the total turnover gained $3,002.63m from $2,054.89m recorded in the week ended 14 August 2026.

The weekly surge was driven entirely by activity in the foreign exchange spot market, where transaction volume grew 155.02 per cent. Spot transactions soared by $3,044.52m to reach $5,008.52m, compared with $1,964.00m recorded the previous week.

Consequently, the average daily spot volume rose to $1,001.70m, expanding spot market dominance to 99.03 per cent of total turnover from 95.58 per cent previously.

The remarkable liquidity surge comes amidst steady macroeconomic stability, sustained foreign portfolio inflows, and robust external reserve buffers, which recently crossed $52.5bn, the highest level recorded in 17 years.

Market participation was further buoyed by enhanced transparency under the Central Bank of Nigeria’s Electronic Foreign Exchange Matching System and the apex bank’s sustained monetary tightening framework aimed at stabilising exchange rates.

In contrast, activity in the foreign exchange derivatives sector contracted over the same period. Turnover for FX derivatives dropped 46.09 per cent ($41.89m), sliding from $90.89m to $49.00m.

The entire weekly decline within the derivatives market was accounted for by a drop in FX Forwards, which fell 46.09 per cent. Daily average derivatives turnover fell to $9.80m, bringing its market share down to 0.97 per cent from 4.42 per cent the preceding week. Analysts attribute the pull-back in derivatives activity to strong immediate liquidity in the spot window, which reduced market participants’ demand for forward hedging contracts.

Overall, the average daily turnover across all market segments expanded to $1,011.50m for the week, up from $461.40m recorded in the prior week.