Nigeria’s FX turnover falls 22% to $2.62bn as Dollar trading slows

Nigeria’s foreign exchange market turnover fell by 22.23 per cent to $2.62 billion in the week ended October 16, 2026, as spot transactions declined and forward trading recorded a sharper contraction.

Data from the latest FMDQ report showed that total dollar transactions dropped from $3.37 billion in the preceding week, representing a decline of $749.15 million.

The fall reversed part of the 98.58 per cent increase recorded in the week ended October 9, highlighting continued volatility in activity across the foreign exchange market.

Spot transactions, which involve buying or selling currencies for near-immediate delivery, fell by 19.83 per cent to $2.60 billion from $3.24 billion. The segment accounted for 99.05 per cent of total turnover, compared with 96.08 per cent a week earlier.

Average daily spot trading also declined to $519.16 million from $647.58 million, while average daily turnover across the market fell by 22.23 per cent to $524.14 million.

Forward transactions recorded a steeper decline, dropping by 81.14 per cent to $24.89 million from $131.95 million. Their contribution to total turnover fell to 0.95 per cent from 3.92 per cent.

Forward contracts allow businesses and investors to agree on an exchange rate for a future transaction, helping them manage uncertainty over currency costs.

The latest decline represents the value of forward transactions executed during the week, rather than a reduction in outstanding contracts.

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Despite the weekly contraction, turnover remained above the $1.70 billion recorded in the week ended October 2. On an average-daily basis, activity was also about 23.5 per cent higher than the $424.24 million recorded during that earlier week.

Meanwhile, the naira recorded mixed movements in the spot and forward markets.

According to Cordros Securities, the currency depreciated by 0.1 per cent week-on-week to N1,333.09 per dollar in the spot market, as renewed domestic demand outweighed the impact of the Central Bank of Nigeria’s $430.60 million intervention during the week.

However, the naira appreciated across forward contract tenors. The one-month contract strengthened by one basis point to N1,352.89 per dollar, while the three-month contract appreciated by eight basis points to N1,370.80.

The six-month contract improved by 22 basis points to N1,436.75, while the one-year contract appreciated by 65 basis points to N1,531.01 per dollar.

analysis of FMDQ data indicated that foreign exchange demand reached a 15-year high of $18.34 billion in the second quarter of 2026, with demand for services and financial payments contributing to the pressure.

Cordros Securities expects the naira to remain broadly stable in the near term, supported by strong foreign reserves and a current account surplus, while warning that lower domestic yields and tighter global financial conditions remain downside risks.