FX derivatives turnover crashes 45.19% as corporate demand dries up
By Aboki Forex —
Activity in the Nigerian foreign exchange market slowed sharply in the week ended 10 July 2026, with total turnover across the Spot and Derivatives markets falling by nearly half. Data from FMDQ Exchange shows total turnover dropped to $1,631.12m, a 46.57% contraction from $3,053.01m recorded in the previous week ended 3 July 2026.
Derivatives segment hit hardest
The decline was driven by a broad pullback in both spot and hedging activity. FMDQ noted in its weekly commentary: “The week-on-week decrease in total turnover was jointly driven by the 46.62% ($1,379.66m) decrease in FX Spot transactions… and the 45.19% ($42.23m) decrease in FX Derivatives transactions for the week-ended 10 July 2026.”
The derivatives slump was entirely due to cooling corporate appetite for future value contracts. The report stated: “The WoW decrease in FX Derivatives turnover was driven by the 45.19% ($42.23m) decrease in FX Forwards turnover.” Exchange-Traded FX Futures remained flat at $0.00m for both weeks, with no activity recorded.
Daily average liquidity shrinks
The slowdown also pulled down daily average liquidity. The daily average for total turnover slipped from $610.60m to just $326.22m during the week under review. FX Spot transactions retained dominance, accounting for 96.86% of total turnover, while FX Forwards made up the remaining 3.14%.
Total turnover fell by $1,421.89m in liquidity compared to the prior week, reflecting a sharp loss of market depth.
For Nigerian businesses and the naira, the plunge in derivatives activity signals reduced hedging activity by corporates, which could leave firms more exposed to exchange rate swings. Lower turnover also suggests weaker confidence in the near-term direction of the currency, as companies hold off on locking in future rates.