Nigeria’s foreign exchange market recorded a sharp drop in trading activity as FX turnover fell 48.7 per cent week-on-week to $2.71bn in the week ended August 28, 2026. The latest figure represents a significant decline from the $5.28bn recorded in the previous trading week, signalling a noticeable slowdown in activity at the official foreign exchange market.
According to data from the Central Bank of Nigeria, trading was largely concentrated on August 26 and 27, with transactions worth $913.76m and $1.06bn respectively. The market recorded $731.18m in turnover on August 24, while trading was suspended on August 25 due to a public holiday.
The latest decline comes just one week after the Nigerian Foreign Exchange Market recorded more than $5bn in transactions. The sharp reversal is likely to attract the attention of market participants, particularly as traders and businesses continue to monitor liquidity and the depth of the official FX market.
Despite the decline in turnover, the CBN says reforms are helping to improve the efficiency and transparency of the foreign exchange market. CBN Governor, Olayemi Cardoso, said the apex bank’s interventions now account for only about 1.2 to 1.3 per cent of total FX market turnover. He linked the improved functioning of the market to measures including the FX Code, electronic trading platform and revised foreign exchange manual.
Meanwhile, Nigeria’s external reserves have continued to strengthen, with CBN data showing reserves rose above $53bn during the week to reach $53.11bn as of August 24. With FX turnover dropping sharply in the latest week, attention will now turn to whether the decline is temporary or signals a broader change in trading activity and liquidity conditions in Nigeria’s official foreign exchange market.
source: punch
