Nigeria's Foreign Exchange (FX) market experienced a robust surge in activity, with total turnover reaching $2.84 billion for the week concluded on June 26, 2026. This substantial increase, as reported by FMDQ Exchange, signifies a 22.06% jump, or an additional $512.37 million, compared to the $2.32 billion recorded in the preceding week ended June 19, 2026.
The heightened market engagement was evident across both the FX Spot and FX Derivatives segments, contributing to an average daily turnover of $567.09 million during the review week, up from $464.62 million in the week prior.
FX Spot Market Remains Dominant
The FX Spot market continued to be the primary driver of transactions, accounting for nearly all market activity. Spot transactions amounted to $2.77 billion, representing 97.74% of the total turnover for the week.
This segment saw a week-on-week increase of $484.47 million, reflecting a growth of 21.18% from the $2.29 billion recorded in the previous week. The average daily turnover in the FX Spot market also rose to $554.28 million from $457.39 million.
Derivatives Segment Records Sharp Increase
While smaller in proportion, the FX Derivatives market witnessed a significant climb, with transactions reaching $64.04 million. This marks a substantial 77.20% increase, or an additional $27.90 million, from the $36.14 million reported in the preceding week.
The derivatives market's share of total turnover increased to 2.26% from 1.56%. Within this segment, FX Forwards were the sole actively traded instrument, with turnover rising to $64.04 million from $36.14 million, representing a 77.20% week-on-week growth. The average daily turnover for FX Forwards increased to $12.81 million from $7.23 million.
Notably, Exchange-Traded FX Futures recorded no activity for the review week, maintaining the trend from the previous period.
Market Liquidity Strengthens
The strong increase in FX Spot turnover indicates improved market participation among banks and their clients. The continued dominance of the spot market, accounting for almost 98% of total turnover, underscores the market's preference for immediate currency transactions over longer-dated hedging instruments.
Despite the sharp increase in FX Forwards turnover, which suggests a growing demand for hedging amidst exchange rate uncertainty, the derivatives market remains relatively shallow compared to the spot segment. This widening gap indicates that most market participants still favor direct access to foreign exchange rather than hedging future currency exposures.
The overall rise in average daily turnover across both market segments points to improved liquidity conditions within the interbank foreign exchange market. This sustained weekly improvement highlights the central role of the FX Spot market in Nigeria’s foreign exchange ecosystem.
For the week ended June 19, 2026, total turnover in the FX Spot and Derivatives markets was $2.323 billion, an increase of 7.70% (+$166.05 million) from the $2.157 billion reported for the week ended June 11, 2026. This previous increase was driven by a 6.80% ($145.64 million) rise in FX Spot transactions to $2.286 billion, and a 129.75% ($20.41 million) increase in FX Derivatives transactions. Exchange-Traded FX Futures has remained the only instrument with zero turnover for the second consecutive week.
