Home ‎Naira turnover slumps 44.9% at FX spot market‎

‎Naira turnover slumps 44.9% at FX spot market‎

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‎Nigeria’s foreign exchange market recorded a sharp weekly decline, as total turnover in the FX Spot and Derivatives segments dropped by 44.90 percent, shedding $1,674.55 million within a single week, according to data obtained by Confiance News from the FMDQ Securities Exchange.
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‎Weekly turnover falls to $2.05 billion
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‎The FMDQ commentary sighted by Confiance News showed that total FX market turnover for the week ended August 14, 2026, stood at $2,054.89 million, down from $3,729.44 million recorded in the preceding week ended August 7, 2026.
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‎The figures, drawn from FMDQ’s comparison of trades between Dealing Member Banks and Authorised Dealers and their clients, revealed that the steep week-on-week decline was largely driven by a slowdown in FX Spot transactions, even as FX Derivatives trading recorded a notable uptick.
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‎FX Spot transactions drive the decline
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‎According to the data, FX Spot turnover fell by 46.98 percent, wiping out $1,740.44 million in value week-on-week. Weekly turnover in the segment dropped to $1,964.00 million from $3,704.44 million previously, with its daily average also declining to $443.22 million from $740.89 million.
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‎The FX Spot market’s share of total turnover slipped slightly to 95.58 percent for the week under review, from 99.33 percent the week before, Confiance News gathered from the report.
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‎FX Derivatives buck the trend, post triple-digit growth
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‎While the broader market contracted, FX Derivatives turnover moved in the opposite direction, according to figures confirmed by Confiance News. The segment recorded a 263.56 percent increase, adding $65.89 million in value week-on-week.
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‎Weekly turnover in FX Derivatives rose to $90.89 million from $25.00 million, with the daily average climbing to $18.18 million from $5.00 million. The segment’s share of total market turnover also expanded to 4.42 percent from 0.67 percent within the week.
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‎Confiance News learned that the entire increase in FX Derivatives turnover was attributed to FX Forwards, which mirrored the derivatives segment figures exactly, rising by 263.56 percent to $90.89 million from $25.00 million week-on-week.
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‎What the numbers mean for the naira
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‎Analysts often read a slowdown in FX Spot activity alongside a jump in forward contracts as a signal that market participants may be positioning for anticipated currency movements or hedging against near-term volatility. The data obtained by Confiance News does not include FMDQ’s own analysis of underlying causes, but the divergence between spot and derivatives activity within a single week is notable.
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‎The report, titled “Weekly FX Turnover Analysis,” forms part of FMDQ’s regular commentary on Nigeria’s foreign exchange market, which tracks turnover between banks and their clients as a gauge of liquidity and market activity.
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‎With Nigeria’s FX market continuing to draw close attention from investors and policymakers alike, the coming weeks will show whether last week’s dip in spot trading was a temporary lull or the start of a broader shift in market behaviour.

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