Nigeria’s foreign exchange market posted its strongest weekly performance in over three months, with total turnover reaching $3.053 billion in the week ended July 3, 2026.
This marks a 7.67% increase from the $2.835 billion recorded in the preceding week, according to the latest FMDQ Exchange report. The average daily turnover also rose to $610.60 million, the highest level seen in recent months, reflecting improved liquidity and stronger market participation.
Spot Transactions Dominate
The FX Spot segment continued to account for the vast majority of activity, making up 96.94% of total turnover at $2.959 billion. This represents a 6.79% week-on-week increase, driven by heightened demand from banks, corporates, and importers for immediate currency needs.
Derivatives See Strong Growth
FX Forwards recorded a sharp 45.92% rise to $93.45 million, indicating growing interest in hedging tools among businesses seeking to protect against potential exchange rate fluctuations. The derivatives segment’s share of overall turnover expanded to 3.06% from 2.26% the previous week. No trades were recorded in Exchange-Traded FX Futures.
Positive Outlook for Liquidity
The sustained increase in trading volume over the past two weeks signals a notable improvement in market depth and liquidity conditions as the third quarter begins. Analysts believe the higher turnover could ease access to foreign exchange for businesses, potentially supporting greater price stability and reducing volatility across key sectors of the economy.
The latest data reflects growing confidence in the official foreign exchange market, supported by ongoing reforms and consistent interventions by the Central Bank of Nigeria. Market watchers will be monitoring whether this upward momentum can be sustained in the coming weeks.
