Nigeria’s FX market turnover crashes 46.57% to $1.63 billion second week of July

Nigeria’s foreign exchange market recorded its sharpest weekly turnover decline of 2026, with total transactions in the FX Spot and Derivatives markets falling 46.57% to $1.631 billion in the week ended July 10, 2026, down from $3.053 billion in the preceding week.

The $1.421 billion week-on-week decline is the largest single-week drop in FX market turnover recorded so far this year, according to FMDQ weekly FX market commentary obtained by Nairametrics.

Both spot and derivatives segments contracted simultaneously in what represents a dramatic reversal of the $3.053 billion turnover seen in the previous week ended July 3.

The daily average fell sharply to $326.22 million from $610.60 million, a drop of $284.38 million per day that signals a significant pull-back in interbank and client-driven currency demand across the five-day trading period.

What the data is saying:

A breakdown of the FMDQ weekly FX turnover analysis comparing the weeks ended July 10 and July 3, 2026, shows a sharp decline across all segments.

• Total FX turnover fell 46.57% to $1.631 billion in the week ended July 10, down from $3.053 billion the previous week — a week-on-week contraction of $1.422 billion.
• The daily average dropped to $326.22 million from $610.60 million — a decline of $284.38 million per trading day.
• FX Spot transactions bore the heaviest share of the decline. Spot turnover fell 46.62% to $1.580 billion from $2.960 billion, with the daily average dropping from $591.91 million to $315.98 million.
• Despite the sharp contraction, Spot maintained its dominant share of total market activity at 96.86% — broadly in line with its 96.94% share in the prior week.
• FX Forwards turnover also declined 45.19% to $51.22 million from $93.45 million, with the daily average falling from $18.69 million to $10.24 million.

Their share of total derivatives turnover held marginally higher at 3.14% compared with 3.06% the previous week — suggesting that the relative role of hedging instruments within the overall market was preserved even as absolute volumes pulled back.

More insights:

The week ended July 10 represents a normalisation from the elevated $3.053 billion transaction turnover of prior week ended July 3, rather than a structural deterioration in Nigeria’s FX market liquidity.

This compression reflects reduced import financing demand mid-week, lower interbank positioning activity, and the typical lull in corporate FX requirements following the intense quarter-opening week.

Despite the week-on-week decline, transaction volumes remain within the range of June 26 and 19 levels, suggesting demand was fairly stable though the July 3 spike was not fully sustained.

Notably, FX Forwards’ share of total derivatives turnover held at $51.22 million — marginally lower than $64.04 million recorded for the week ended June 26, confirming the relative importance of hedging instruments within the FX market has not declined even as absolute volumes retreated.

What you should know:

Nigeria’s official foreign exchange market has recorded wide weekly swings in turnover in recent weeks, highlighting changing demand patterns among banks, corporates, and institutional investors. The latest contraction follows three consecutive weeks of elevated activity that had briefly pushed weekly turnover above the $3 billion mark.

• In the week ended June 19, FX market turnover rose to $2.32 billion as market participants increased trading activity, reflecting sustained demand for foreign exchange across the official market.
• Activity strengthened further in the week ended June 26, with total turnover climbing to $2.84 billion, supported by a 22% week-on-week increase in transactions as both spot and forward market volumes expanded on improved market participation.
• Momentum accelerated again in the week ended July 3 when turnover reached $3.05 billion—the highest weekly level in about three months—driven primarily by a surge in FX Spot transactions, which accounted for almost 97% of total market activity.
• Although turnover fell sharply in the latest reporting week, the decline appears to represent a normalisation after an unusually strong start to July rather than a deterioration in market liquidity.

The FMDQ weekly data tracks transactions executed between Dealing Member banks, authorised dealers, and their clients, making it one of the most comprehensive indicators of liquidity and activity in Nigeria’s official foreign exchange market. The market continues to operate under Nigeria’s unified, market-determined exchange rate framework introduced by the Central Bank of Nigeria in June 2023.