Nigeria’s FX market turnover climbs to quarterly peak at $3.05bn  

Nigeria’s foreign exchange market opened the third quarter of 2026 on a strong note, recording its highest weekly turnover of the current quarter as total transactions across the FX Spot and Derivatives markets rose by 7.67 per cent to $3.053 billion.

The latest weekly foreign exchange market review by FMDQ showed that total turnover increased from $2.835 billion recorded in the week ended June 26, 2026, representing a week-on-week gain of $217.57 million.

Daily average turnover also climbed to $610.60 million from $567.09 million in the preceding week, marking the highest daily trading volume recorded in more than three months and signalling stronger participation by banks, corporates and institutional investors.

The improved performance was driven by sustained growth in FX Spot transactions alongside a sharp increase in FX Forward contracts, which reflected heightened demand for currency hedging by market participants.

According to the report, FX Spot transactions remained the dominant segment of the market, accounting for 96.94 per cent of total weekly turnover.

Spot transactions rose by 6.79 per cent to $2.960 billion during the review period, compared with $2.771 billion in the previous week. On a daily basis, average spot trading increased to $591.91 million from $554.28 million, indicating stronger interbank activity and increased corporate demand for foreign exchange at the beginning of the new quarter.

Activity in the derivatives market also recorded significant growth. FX Forward transactions surged by 45.92 per cent to $93.45 million from $64.04 million a week earlier, while their share of total market turnover increased to 3.06 per cent from 2.26 per cent.

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The increase suggests that more corporates, importers and institutional investors are turning to forward contracts to hedge against possible fluctuations in the value of the naira by locking in exchange rates for future transactions.

Although derivatives still account for a relatively small portion of total FX market activity, the expansion points to a gradual strengthening of risk management practices within Nigeria’s foreign exchange market.

FMDQ data further showed that the market has recovered significantly over the past two weeks. Total weekly turnover rose from $2.323 billion recorded in the week ended June 19, 2026, to $3.053 billion in the latest reporting week, representing a cumulative increase of approximately $730 million.

The strong rebound suggests improving liquidity conditions in the official foreign exchange market as the third quarter begins, with higher transaction volumes reflecting renewed confidence among market participants.

FX Spot transactions involve the immediate or near-immediate exchange of currencies, usually settling within two business days, and are largely driven by import financing, corporate foreign exchange requirements and interbank trading.

FX Forward contracts, on the other hand, enable businesses and investors to agree on exchange rates for future transactions, providing protection against adverse currency movements.

The FMDQ weekly review tracks transactions conducted by dealing member banks, authorised dealers and their clients, offering a key measure of activity and liquidity in Nigeria’s official foreign exchange market.