Nigeria’s foreign exchange market experienced a sharp rebound in the week ended July 17, 2026, with total turnover rising to $2.386 billion. This surge represents a 46.27% increase, or $754.67 million, from the $1.631 billion recorded in the previous week, according to the latest weekly FX market turnover report from FMDQ Exchange.
The strong recovery was driven entirely by activity in the spot market, underscoring a growing demand for immediate foreign exchange settlement. This surge in spot transactions more than offset a steep decline in derivatives trading during the review period.
A breakdown of trading activity shows that FX Spot transactions climbed to $2.371 billion, representing 99.39% of total market turnover. This segment increased by $791.39 million, translating to a 50.09% week-on-week growth, emerging as the sole driver of the overall increase in FX market activity.
Conversely, FX Forwards declined significantly to $14.50 million from $51.22 million, marking a 71.69% week-on-week contraction. FX derivatives contributed only 0.61% of total market turnover, down sharply from 3.14% in the preceding week, with the Exchange-Traded FX Futures segment remaining dormant.
The market recorded an average daily turnover of $477.16 million, up from $326.22 million in the preceding week, reflecting stronger liquidity across the foreign exchange market. Average daily FX Spot turnover also rose sharply to $474.26 million from $315.98 million in the previous week, while average daily FX Forward turnover fell to $2.90 million, compared with $10.24 million a week earlier.
This latest trading pattern suggests a clear shift in market preference toward immediate currency transactions rather than contracts for future delivery. Spot transactions are typically used by importers, exporters, investors, and banks to meet current payment obligations.
The overwhelming dominance of spot transactions suggests that market participants were primarily focused on meeting immediate foreign currency demand. The reduced use of forward contracts indicates softer demand for exchange-rate hedging as the exchange rate stabilizes.
This shift also points to relatively improved confidence in near-term FX liquidity, given improvements in Nigeria’s foreign reserves. This reduces the need for businesses to secure future exchange rates through derivative instruments.
The latest report indicates an improvement over a sharp decline in the prior week when turnover crashed by more than 46.57% to $1.63 billion. It reinforces a pattern seen in recent weeks where the spot market remains the dominant segment, driving Nigeria’s foreign exchange market.
While the derivatives segment continues to play a smaller role, it remains strategically important in helping businesses manage future currency risks. However, the week ended July 17 saw the entire increase in turnover driven exclusively by spot transactions, highlighting the importance of immediate liquidity.
