Nigeria’s FX market turnover rises 7.67% to $3.05 billion, highest in three months

Nigeria’s foreign exchange market recorded its strongest weekly turnover of the current quarter, with total transactions in the FX Spot and Derivatives markets rising 7.67% to $3.053 billion in the week ended July 3, 2026, up from $2.835 billion in the week ended June 26, 2026.

According to the latest FMDQ weekly FX market review, daily average turnover stood at about $610.60 million, with both spot and derivatives segments recording simultaneous growth for the second consecutive week, the highest recorded daily turnover in more than three months.

The $217.57 million week-on-week increase was driven by a combination of rising spot transaction volumes and a sharp acceleration in FX Forwards activity, which nearly doubled its share of total derivatives turnover.

What the data is saying:

Nairametrics comparative analysis of the FMDQ weekly total FX turnover across segments in the weeks ended July 3 and June 26, 2026 showed:

Total FX Turnover:

• Week ended July 3: $3,053.01 million
• Daily average: $610.60 million
• Week ended June 26: $2,835.44 million
• Daily average: $567.09 million
• Week-on-week change: +7.67% (+$217.57 million)

For the two consecutive weeks, the Exchange-Traded FX Futures recorded zero activity.

Breakdown by segments

FX Spot:

• Week ended July 3: $2,959.56 million
• Daily average: $591.91 million
• Share: 96.94%
• Week ended June 26: $2,771.40 million
• Daily average: $554.28 million
• Share: 97.74%
• Week-on-week change: +6.79% (+$188.16 million)

FX Forwards:

• Week ended July 3: $93.45 million
• Daily average: $18.69 million
• Share: 3.06%
• Week ended June 26: $64.04 million
• Daily average: $12.81 million
• Share: 2.26%
• Week-on-week change: +45.92% (+$29.41 million)

FX Derivatives (total):

• Week ended July 3: $93.45 million
• Daily average: $18.69 million
• Share: 3.06%
• Week ended June 26: $64.04 million
• Daily average: $12.81 million
• Share: 2.26%
• Week-on-week change: +45.92% (+$29.41 million)

More insights:

The week’s FX market performance shows that the FX Spot transactions remained the dominant instrument by a wide margin, accounting for 96.94% of total weekly turnover at $2.959 billion.

The daily average spot transaction value climbed to $591.91 million from $554.28 million in the prior week — an increase of $37.63 million per day.

This improvement in daily average activity suggests that the first week of Q3 2026 opened with stronger-than-usual interbank and client-driven currency demand.

In the derivatives segment, FX Forwards surged 45.92% week-on-week to $93.45 million.

The near-doubling of FX Forwards volume — from $64.04 million to $93.45 million — signals a meaningful uptick in currency hedging activity among corporates, importers, and institutional investors seeking to lock in exchange rates for future settlement.

The derivatives segment’s share of total turnover rose to 3.06% from 2.26% — a relatively small absolute share but a 35.4% relative expansion in one week.

While FX Spot will remain, the dominant instrument given the market’s structural preference for immediate settlement, the growing derivatives activity reflects a maturing FX risk management culture among Nigerian market participants.

Notably, this week’s total turnover of $3.053 billion compares favourably with the $2.323 billion recorded in the week ended June 19, 2026 — representing a cumulative recovery of approximately $730 million in weekly FX market activity across two consecutive weeks. The trend suggests improving liquidity conditions in Nigeria’s FX market as Q3 2026 opens.

What you should know:

The week’s $610.60 million daily average turnover is the highest recorded since the current quarter, suggesting that Q3 2026 is opening with stronger FX market participation than the levels seen in the final weeks of Q2.

• FX Spot transactions — at 96.94% of total turnover — involve immediate or near-immediate currency exchange typically settling within two business days, and primarily reflect import financing, corporate FX needs, and interbank positioning.
• FX Forwards — which surged 45.92% to $93.45 million in the review week — are contractual agreements to buy or sell foreign currency at a predetermined rate on a future date.
• Their increased utilisation signals active currency risk management by market participants hedging against anticipated naira movements.

The Exchange-Traded FX Futures segment has constantly failed to attract meaningful volume in both comparison weeks despite its availability suggesting absolute dominance of over-the-counter instruments in Nigeria’s FX derivatives market.

The FMDQ FX market data covers transactions between FMDQ Dealing Member banks, authorised dealers, and their clients, providing the primary window into Nigeria’s official foreign exchange market activity on a weekly basis.