The Foreign Exchange (FX) market recorded a total turnover of $2.84 billion in the week ended June 26, 2026, as trading activity strengthened across both the spot and derivatives segments.
According to the latest weekly FX market turnover report released by FMDQ Exchange, total turnover increased by $512.37 million, or 22.06%, compared with the $2.32 billion recorded in the previous week ended June 19, 2026.
The improvement in market activity was driven by higher trading volumes across both the FX Spot and FX Derivatives markets. Average daily turnover also rose to $567.09 million during the review week from $464.62 million in the previous week, reflecting stronger trading activity across the market.
What the data is saying
A breakdown of the figures shows that the FX Spot market remained the dominant segment of Nigeria’s foreign exchange market, accounting for 97.74% of total turnover. Spot transactions rose to $2.77 billion during the week from $2.29 billion previously, representing a 21.18% increase, while average daily spot turnover climbed to $554.28 million from $457.39 million.
Although significantly smaller in size, the FX Derivatives market recorded the fastest growth during the week. Turnover surged by 77.20% to $64.04 million from $36.14 million, increasing its share of total market activity from 1.56% to 2.26%. The entire derivatives market activity came from FX Forwards, with turnover rising to $64.04 million and average daily trading increasing to $12.81 million, while Exchange-Traded FX Futures recorded no transactions for another consecutive week.
The latest figures suggest that liquidity conditions in Nigeria’s interbank foreign exchange market continued to improve, supported by stronger participation from banks and their customers. However, the overwhelming dominance of spot transactions indicates that most market participants still prefer immediate access to foreign exchange rather than using longer-term hedging instruments.
The sharp rise in FX Forwards turnover nevertheless points to growing interest in managing exchange rate risks amid continued currency uncertainty. While the derivatives market remains relatively shallow compared with the spot segment, sustained growth in forwards trading could signal the gradual deepening of Nigeria’s risk management market if the trend continues.
What you should know
The latest performance extends the positive momentum recorded in the previous reporting week. For the week ended June 19, 2026, total FX market turnover had already increased by 7.70% to $2.323 billion from $2.157 billion in the preceding week, driven by growth in both spot and derivatives transactions.
The continued increase in weekly turnover suggests that liquidity in Nigeria’s foreign exchange market has remained relatively robust in recent weeks. However, trading activity remains heavily concentrated in the spot market, underscoring the need for broader participation in derivatives instruments to support a more balanced and mature foreign exchange market.
