Nigeria’s foreign exchange market witnessed a sharp decline in activity during the week ended July 10, 2026, with total turnover dropping to $1.631 billion a 46.57% decrease from the $3.053 billion recorded the previous week.
This marks the largest single-week contraction in FX trading volume so far this year, according to data from FMDQ Exchange. The average daily turnover also fell significantly to $326.22 million from $610.60 million, representing a daily reduction of $284.38 million.
Sharp Contraction Across Segments
The FX Spot segment, which accounts for the bulk of transactions, bore the heaviest impact. Spot turnover decreased by 46.62% to $1.580 billion, though it still made up 96.86% of total market activity.
In the derivatives segment, FX Forwards turnover dropped by 45.19% to $51.22 million. No activity was recorded in Exchange-Traded FX Futures for the second consecutive week.
Normalisation After Strong Start
Analysts view the decline as a return to more typical levels following an unusually active first week of July, when turnover hit a three-month high of $3.05 billion. The latest figures are broadly in line with activity seen in late June, suggesting the drop reflects reduced corporate FX demand and interbank positioning rather than a fundamental liquidity crisis.
The sustained high turnover in previous weeks had been driven by stronger import financing needs and hedging activity. The current moderation indicates a temporary lull, though it underscores the fluctuating nature of demand in Nigeria’s foreign exchange market.
The development comes as the Central Bank of Nigeria continues to manage liquidity and support orderly trading under the unified exchange rate framework. Market participants will be watching closely to see whether activity rebounds in the coming weeks or if the slowdown signals a broader easing in FX demand.
