Total foreign-exchange turnover on the FMDQ market declined 35.41 per cent, or $930.18 million, to $1.70 billion in the week ended Friday 2 October 2026. The figure compares with $2.63 billion recorded in the week ended 25 September, according to the FMDQ FX Market Analysis Report.
The drop followed a sharp increase in trading volume the previous week. Activity in the Nigerian Autonomous Foreign Exchange Market was characterised by tighter liquidity as supply conditions and seasonal demand patterns shifted. Institutional flows typically respond to central-bank interventions, export proceeds and foreign portfolio inflows.
Spot Market Leads the Decline
The contraction was driven mainly by the spot segment. Spot transaction value fell 36.93 per cent, or $955.70 million, to $1.63 billion from $2.59 billion a week earlier. Spot trades, which usually meet immediate needs for trade payments and corporate remittances, accounted for 96.19 per cent of total turnover.
Daily average spot volume declined from $517.59 million to $408.06 million. Across both the spot and derivatives markets, daily average turnover fell to $424.24 million from $525.43 million in the preceding week.
Derivatives Activity Increases
The FX derivatives market moved in the opposite direction, rising 65.09 per cent, or $25.52 million, to $64.73 million from $39.21 million. The entire derivatives volume consisted of FX forwards.
Derivatives’ share of total market activity expanded from 1.49 per cent to 3.81 per cent. Daily average turnover in the segment rose to $16.18 million from $7.84 million. The increase points to greater use of forwards by market participants seeking to hedge currency risk and secure exchange rates for future obligations amid changing macroeconomic conditions.
Market Implications
Spot transactions remain by far the largest component of turnover at 96.19 per cent. The rise in forwards activity, however, indicates that more businesses are locking in rates for upcoming commitments. Immediate foreign-exchange demand linked to trade and corporate payments continues to dominate overall market volume.
