Nigeria’s foreign exchange market recorded a major jump in activity as total FX turnover surged by 146.12 per cent to $5.05bn in the week ended August 21, 2026. Data from FMDQ Securities Exchange showed that turnover increased by $3.00bn from the $2.05bn recorded in the previous week, pointing to significantly stronger activity in the market.
The sharp increase was driven almost entirely by transactions in the FX spot market. Spot-market turnover rose by 155.02 per cent to $5.01bn, compared with $1.96bn a week earlier. As a result, the average daily spot volume climbed to about $1.00bn, with spot transactions accounting for 99.03 per cent of total FX turnover during the week.
The surge comes against a backdrop of improved macroeconomic conditions, stronger foreign portfolio inflows and healthier external reserves. Nigeria’s external reserves recently crossed $52.5bn, their highest level in 17 years, providing additional support for confidence and liquidity in the foreign exchange market.
Market activity was also supported by greater transparency through the Central Bank of Nigeria’s Electronic Foreign Exchange Matching System and its continued monetary policy measures aimed at improving exchange-rate stability. However, the derivatives segment moved in the opposite direction, with turnover falling by 46.09 per cent from $90.89m to $49m. The decline was entirely driven by lower activity in FX Forwards.
Overall, average daily turnover across the Nigerian FX market more than doubled to $1.01bn from $461.40m in the previous week. The figures highlight the growing depth and liquidity of the market, while the sharp fall in derivatives activity suggests that participants may currently have less need for forward contracts as immediate access to foreign currency improves.
source: punch
