Nigeria’s foreign exchange market recorded a significant boost in trading activity as total turnover on the FMDQ Exchange climbed to $2.84 billion for the week ended June 26, 2026. The latest figures represent a 22.06 percent increase from the $2.32 billion recorded in the previous week, highlighting renewed momentum in the country’s currency market and improved participation from banks and other market players.
Data released by FMDQ Exchange showed that the FX Spot market remained the backbone of trading activity, accounting for nearly 98 percent of total transactions. Spot market turnover rose sharply to $2.77 billion from $2.29 billion recorded a week earlier, reflecting increased demand for immediate foreign exchange transactions. Average daily turnover in the segment also climbed substantially, reaching $554.28 million compared to $457.39 million in the preceding week.
The derivatives segment also delivered an impressive performance during the review period. FX Derivatives turnover surged by 77.2 percent to $64.04 million, up from $36.14 million recorded the previous week. Within this category, FX Forwards remained the only actively traded instrument, suggesting that some market participants are increasingly seeking protection against future exchange rate fluctuations amid ongoing currency uncertainties.
Analysts believe the strong growth across both market segments points to improving liquidity conditions within Nigeria’s interbank foreign exchange market. While demand for hedging products is gradually increasing, the overwhelming dominance of spot transactions indicates that most businesses and financial institutions still prefer direct access to foreign exchange rather than locking in future rates through derivative instruments.
The latest performance extends a positive trend in Nigeria’s FX market, following another increase recorded in the previous week. Market observers say the consistent rise in turnover signals growing confidence among participants and reinforces the critical role of the FX Spot market in supporting the country’s foreign exchange ecosystem. However, the absence of trading activity in Exchange-Traded FX Futures for a second consecutive week highlights the need for deeper participation and broader adoption of alternative hedging instruments within the market.
source: nairametrics
