Key points
- Total foreign exchange market turnover rose to $2.84 billion in the week ended June 26, 2026, representing a 22.06% week-on-week increase.
- FX Spot transactions accounted for 97.74% of total turnover, reaching $2.77 billion.
- FX Derivatives turnover jumped 77.20% to $64.04 million, driven entirely by FX Forwards.
- Average daily market turnover increased to $567.09 million from $464.62 million in the previous week.
- Exchange-Traded FX Futures recorded no transactions for another consecutive week.
Main Story
Trading activity in Nigeria’s foreign exchange market strengthened significantly during the week ended June 26, 2026, with total turnover rising to $2.84 billion as participants increased activity across both the spot and derivatives segments.
The latest weekly Foreign Exchange Market Turnover Report released by FMDQ Exchange showed that total market turnover increased by $512.37 million, or 22.06%, from $2.32 billion recorded in the previous week ended June 19, 2026.
The increase reflects improved liquidity and stronger participation by authorised dealers and their customers amid sustained activity in Nigeria’s foreign exchange market.
Average daily turnover also improved during the review period, rising to $567.09 million from $464.62 million recorded a week earlier.
The FX Spot market remained the primary driver of trading activity, accounting for nearly all transactions executed during the week.
According to the report, FX Spot turnover increased to $2.77 billion, representing 97.74% of total market turnover, compared with $2.29 billion recorded in the preceding week.
The segment recorded a week-on-week increase of $484.47 million, equivalent to a 21.18% growth, while average daily spot market turnover climbed to $554.28 million from $457.39 million.
Activity also strengthened in the FX Derivatives market, where total turnover rose sharply to $64.04 million from $36.14 million recorded the previous week.
The derivatives segment accounted for 2.26% of total market turnover during the review period, up from 1.56% in the preceding week.
Overall, FX Derivatives turnover increased by 77.20%, representing an additional $27.90 million in traded value.
Within the derivatives market, FX Forwards remained the only actively traded instrument.
Turnover in FX Forwards rose to $64.04 million from $36.14 million in the previous week, while average daily turnover increased to $12.81 million from $7.23 million.
Meanwhile, Exchange-Traded FX Futures recorded no transactions during the review week, extending a run of inactivity in that segment.
The latest figures build on the momentum recorded in the previous reporting week, when total FX market turnover increased by 7.70% to $2.323 billion from $2.157 billion recorded during the week ended June 11, 2026.
The Issues
The latest market data highlights the continued dominance of spot transactions within Nigeria’s foreign exchange market, suggesting that participants remain focused on immediate access to foreign currency rather than longer-term hedging instruments.
Although derivatives trading recorded strong percentage growth, the segment remains relatively small compared with the spot market, indicating that hedging instruments are yet to gain widespread adoption.
The continued absence of activity in Exchange-Traded FX Futures also reflects limited participation in that market segment despite ongoing efforts to deepen Nigeria’s foreign exchange market.
Market analysts believe improving liquidity conditions and continued policy reforms will be crucial to expanding derivatives usage and strengthening overall market depth.
What’s Being Said
According to the latest FMDQ Exchange Weekly FX Market Turnover Report:
“FX Spot transactions rose to $2.77 billion, representing 97.74% of total turnover during the review period.”
The report also noted that:
“FX Derivatives transactions climbed to $64.04 million, with FX Forwards remaining the only actively traded derivatives instrument.”
FMDQ’s data further showed that Exchange-Traded FX Futures recorded zero turnover for another consecutive week.
What’s Next
Market participants will continue to monitor liquidity conditions and foreign exchange supply dynamics as trading resumes in the new week.
Analysts expect the spot market to remain the dominant source of trading activity in the near term, while gradual improvements in market confidence and exchange rate stability could encourage greater use of derivatives for currency risk management.
Attention will also remain on policy measures by monetary authorities aimed at deepening Nigeria’s foreign exchange market and improving access to hedging instruments.
Bottom Line
Nigeria’s foreign exchange market recorded another week of stronger trading activity, with turnover climbing above $2.8 billion on the back of robust spot market transactions and a sharp increase in FX Forwards trading. While liquidity conditions continue to improve, the market remains overwhelmingly dependent on spot transactions, highlighting the need for broader adoption of derivatives as risk management tools.
