Turnover on the Nigerian Foreign Exchange Market rose sharply to $1.41 billion on August 17, 2026, reaching its highest level in five weeks as trading activity rebounded.
Central Bank of Nigeria data, reviewed by Nairametrics, show that the figure is the strongest since July 21, when turnover stood at $1.53 billion. The August 17 volume was more than seven times the $185 million recorded on August 11, which had marked the lowest level in 11 weeks.
Recovery Path and Market Activity
After the sharp drop on August 11, activity recovered across subsequent sessions. Turnover rose to $607.47 million on August 12, then $387.09 million on August 13 and $352.34 million on August 14, before the steep jump on August 17.
The market recorded 394 deals on August 17, including 178 interbank transactions. The rebound followed a period of relatively subdued and volatile daily volumes earlier in the month.
Naira Strengthens Alongside Higher Turnover
The recovery in trading activity was accompanied by a firmer naira in the official market. The currency closed at N1,350 per dollar on August 17, compared with N1,358.25 on August 14, an improvement of N8.25. The weighted average rate stood at N1,349.54, while the simple average was N1,350.98. The closing rate was also stronger than the N1,365 recorded on August 11, when turnover was at its recent low.
In global markets, the euro traded around $1.1581 in early Asian dealing, close to its two-month high of $1.1614. Sterling stood near $1.3548, approaching a three-month peak. The Australian dollar gained 0.11 per cent to $0.71119, while the New Zealand dollar hovered around $0.5902.
Analysts’ Assessment
Analysts linked the sharp rise in NAFEM turnover to improved liquidity and stronger participation, while cautioning that large individual transactions may have driven much of the increase.
Dr Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise, suggested the jump could reflect major corporate FX deals. “I think it may be due to some big companies who have made huge transactions which can make a whole lot of difference,” he said. Large importers of raw materials, machinery or other inputs, as well as government projects requiring foreign components, could account for a significant share of the volume. He noted that the participation of a few major players, rather than a broad-based rise in demand, might explain the surge.
Dr Olu Olajengbesi of the University of Abuja said the real test would be sustainability. “The real test is whether this liquidity is sustained. If we see higher turnover across several weeks, together with stable or rising reserves and a relatively narrow exchange-rate range, then we can make a stronger case that the FX market is becoming deeper and more efficient,” he said.
Reserves Backdrop
The latest turnover data come against a backdrop of stronger external buffers. Nigeria’s external reserves reached $52.02 billion on July 20, 2026, their highest level since January 2009 and above the Central Bank’s earlier full-year projection of $51.04 billion for 2026. That forecast had been based on expectations of stronger oil earnings, foreign exchange market reforms and improved external inflows.
The August 17 figures point to a substantial recovery in official FX market liquidity after the earlier slowdown, though market watchers will be watching subsequent sessions to determine whether the higher activity is sustained.
