Forex daily turnover nears $1 billion as naira stability gains momentum

The foreign exchange market recorded a sharp rise in liquidity in the first half of the year, with daily turnover regularly approaching $1 billion. Data from the Central Bank of Nigeria (CBN) showed that more than $31 billion worth of foreign exchange was traded in the official market between March and June 2026, signalling a major improvement in market depth.

Unlike previous periods when liquidity depended largely on periodic CBN interventions, turnover remained consistently strong throughout the second quarter, with daily trading frequently ranging between $500 million and $1 billion. The highest daily turnover on record under the Nigeria Foreign Exchange Market (NFEM) framework was achieved on May 12, when $1.82 billion was traded.

Record trading days and monthly trends

Transactions within the period showed that on May 12, $1.82 billion was recorded, followed by March 10 with $1.14 billion, March 13 with $1.13 billion, and June 30 with $1.07 billion. On June 15, $985.6 million was recorded, followed by March 23 with $984.1 million, April 8 with $966.4 million, June 25 with $923.6 million, and June 29 with $910.8 million.

Market analysts noted that the sustained increase in turnover is more significant than isolated spikes because it indicates broader participation by buyers and sellers, reducing pricing distortions and improving overall market efficiency. March recorded three trading sessions with turnover above $980 million, while April maintained strong liquidity with transactions reaching $966.4 million on April 8 and $802.4 million on April 29. May emerged as the busiest month of the first half after recording the record $1.82 billion traded on May 12. June sustained the momentum, producing four trading sessions above $900 million, suggesting that improved liquidity had become increasingly structural rather than event-driven.

Interbank market deepens, transaction counts rise

The interbank FX market also deepened during the period, with daily turnover generally ranging between $70 million and $250 million. One of the strongest sessions occurred on April 29, when interbank transactions approached $250 million, while several June sessions exceeded $170 million. Several sessions recorded more than 350 individual transactions, while April 8 posted 515 deals, reflecting wider market participation and reducing the influence of large individual trades on exchange-rate movements.

The CBN’s data showed that the naira closed on Friday at N1,370.19 to the dollar, down from N1,370.15 traded the previous day. At the parallel market, the naira closed at N1,405 per dollar, despite external reserves hitting $51.46 billion on June 30. Data published on the apex bank’s website showed that reserves increased to $49.80 billion as of June 1, 2026, from $48.32 billion recorded on May 7. The gross external reserves have further climbed to a record $50.04 billion, reinforcing investor confidence and boosting the CBN’s capacity to support the local currency.

What this means for the naira and businesses

In an emailed note to investors, Managing Director of Financial Derivatives Company Limited, Bismark Rewane, said while lower oil prices and a production average of 1.5 million barrels per day mean softer revenue for the Nigerian government, a risk to the naira’s sustained stability around N1,405/$, and a rising fiscal deficit estimated at 4.4 per cent of Gross Domestic Product, it is good news for consumers and small business owners. President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said the FX trading activity surge represents improved liquidity in the official foreign exchange market, strengthening price discovery and market confidence. He said at $51.46 billion, the external reserves position represents strong prospects for the naira and support for the domestic economy.