BREAKING: Nigeria’s dollar trading plunges to $1.81 billion as turnover declines 51%

The value of dollars traded in Nigeria’s foreign exchange market fell by 51.29% to $1.81 billion in the week ended November 6, 2026, from $3.71 billion in the preceding week, representing a decline of approximately $1.90 billion.

According to the latest FMDQ report tracking foreign exchange transactions between authorised dealers and their customers, the decline exceeded the 46.57% drop recorded in the week ended July 10, which Nairametrics previously reported as the sharpest weekly fall of 2026 at the time.

Average daily FX turnover also declined to $361.67 million from $742.51 million, reflecting a substantial slowdown in trading activity across the market.

Spot Dollar trading falls 51%:

Spot foreign exchange transactions accounted for most of the decline in Nigeria’s weekly dollar turnover, falling by 50.91% to $1.79 billion from $3.64 billion.

The segment, which covers transactions involving near-immediate delivery of foreign currency, recorded a weekly reduction of approximately $1.85 billion.

• Spot transactions accounted for 98.77% of total FX turnover during the week, compared with 98.01% in the preceding week.
• Average daily spot turnover declined to $357.23 million from $727.74 million.
• Spot trading contributed approximately 97.3% of the overall $1.90 billion reduction in weekly dollar turnover.

The derivatives segment also recorded a significant contraction, with forward transactions declining by 69.93% to $22.20 million from $73.83 million.

Forward contracts accounted for 1.23% of total turnover, down from 1.99% in the preceding week.

Average daily derivatives turnover fell to $4.44 million from $14.77 million, while the segment contributed approximately $51.63 million to the weekly decline.

The reported forward turnover represents contracts executed during the week rather than the value of outstanding forward positions.

Together, the spot and forward figures show that the contraction affected both immediate dollar transactions and forward-market activity.

Naira weakens despite CBN intervention:

The naira depreciated by approximately 0.1% week-on-week to N1,349.00 per dollar despite a $50 million intervention by the Central Bank of Nigeria.

• The weakening occurred alongside the sharp decline in FX trading volumes, while forward exchange rates also moved against the naira across all reported tenors.
• The one-month forward rate weakened by 0.2% to N1,370.19 per dollar, while the three-month rate depreciated by 0.2% to N1,405.78 per dollar.
• The six-month forward rate declined by 0.2% to N1,455.88 per dollar.
• The one-year forward rate weakened by 0.6% to N1,557.65 per dollar, recording the largest percentage movement among the reported tenors.

Nairametrics had earlier reported that the currency weakened from N1,329.50 per dollar at the end of September to approximately N1,346 per dollar by October 30.

The latest FX figures therefore show a further modest depreciation in the naira, even as dollar trading volumes declined substantially.

Analysts expect relative Naira stability:

Analysts expect the naira to remain relatively stable in the near term, although they identified risks that could limit further appreciation.

Cordros Securities based its outlook on Nigeria’s foreign exchange reserves and continued current account surplus, while cautioning that changes in domestic yields and global financial conditions could affect portfolio investment flows.

• “We expect the naira to remain broadly stable around current levels in the near term,” Cordros Securities said.
• Cowry Asset Management expects the naira to trade within a “relatively stable band.”

Cordros warned that lower domestic yields or tighter global financial conditions could weigh on portfolio flows into Nigeria.

Cowry Asset Management also identified sustained dollar demand, seasonal payment obligations and crude oil prices as factors that could limit near-term naira appreciation.

Market attention is expected to shift towards the next inflation report and the Monetary Policy Committee’s interest-rate decision later in November.

This week, Treasury Bills maturities of N148.57 billion and Open Market Operations maturities of N774.53 billion are expected.

The combined maturities amount to approximately N923.10 billion and will form part of the liquidity developments monitored by market participants. The direction of the naira will remain sensitive to foreign exchange demand, portfolio flows and broader financial market conditions.