Nigeria’s official foreign exchange market witnessed a remarkable surge in trading activity as total turnover climbed by 83.38 percent to $4.38 billion in the week ended July 24, 2026. The sharp increase signals growing confidence in the country’s foreign exchange market, with stronger liquidity and improved investor participation following recent reforms introduced by the Central Bank of Nigeria (CBN). The latest figures released by FMDQ Securities Exchange highlight a market that is becoming more active as businesses and investors respond to a more transparent trading environment.
According to FMDQ’s weekly foreign exchange market report, total turnover rose from $2.39 billion recorded in the previous week to $4.38 billion, representing an increase of nearly $2 billion within just five trading days. Analysts attribute the impressive growth to stronger autonomous foreign currency inflows and increased corporate demand for dollars in both the spot and derivatives markets. The renewed momentum also reflects growing confidence in the CBN’s ongoing efforts to improve liquidity and stabilize the foreign exchange market.
The report showed that the spot market remained the major driver of trading activity, contributing $4.31 billion, or 98.56 percent, of the week’s total transactions. This represented an 81.85 percent increase compared to the previous week, as businesses intensified foreign exchange purchases to meet import obligations, settle international transactions, and manage operational needs. The significant rise in spot trading underscores the market’s increasing depth and improved access to foreign currency.
Trading in foreign exchange derivatives also recorded an exceptional performance during the review period. FX derivatives turnover soared by 333.59 percent, reaching $62.87 million, driven entirely by a sharp increase in FX forward contracts. The growing use of hedging instruments suggests that more corporates and institutional investors are actively protecting themselves against currency volatility while taking advantage of improved market conditions. Meanwhile, average daily FX turnover almost doubled from $477.16 million to $875 million, further reflecting the heightened pace of market activity.
The continued improvement in Nigeria’s foreign exchange market comes as the Central Bank pushes ahead with reforms aimed at enhancing transparency, simplifying foreign exchange remittances, and strengthening market confidence. Market observers believe sustained policy consistency, stronger liquidity, and increased investor participation could further support exchange rate stability and encourage greater foreign capital inflows in the months ahead, positioning the FX market for continued growth.
source: punch
