FMDQ FX turnover drops 35.41% to $1.70bn as spot trades slow

Total foreign exchange turnover on the FMDQ market fell by 35.41 per cent ($930.18m) to $1.70bn in the week ended Friday, 2 October, 2026. The figure is down from $2.63bn in the week ended 25 September, 2026, according to the FMDQ FX Market Analysis Report.

The contraction followed a notable surge in trading volume the preceding week. Activity in the Nigerian Autonomous Foreign Exchange Market was marked by tightening liquidity as FX supply dynamics and seasonal demand fluctuated. Institutional liquidity often moves in response to central bank interventions, export proceeds and foreign portfolio inflows.

Spot market drives decline

The weekly downturn was primarily driven by the spot market. Spot transaction value dropped by 36.93 per cent ($955.70m) to $1.63bn, down from $2.59bn in the preceding week.

Spot trades, which typically reflect immediate currency needs for trade obligations and corporate remittances, accounted for 96.19 per cent of total FX turnover. Daily average spot transactions fell from $517.59m to $408.06m.

Across both the Spot and Derivatives markets, daily average turnover contracted to $424.24m compared with $525.43m in the prior week.

Derivatives and forwards rise

The FX Derivatives market moved in the opposite direction. It grew by 65.09 per cent ($25.52m) to $64.73m, up from $39.21m in the week ended September 25, 2026.

The derivatives market, composed entirely of FX Forwards turnover, expanded its market share from 1.49 per cent to 3.81 per cent of total market activity. Its daily average stood at $16.18m compared with $7.84m in the previous week.

The uptick in forwards trading highlights growing efforts by market participants to hedge against currency volatility and lock in exchange rates for future obligations amid shifting macroeconomic conditions.

What it means for the market

The data leaves spot trading as the dominant segment, at 96.19 per cent of turnover. For Nigerian businesses, the rise in forwards shows more participants are seeking to lock in exchange rates for future obligations. Immediate FX needs tied to trade obligations and corporate remittances still drive most market activity.