Nigeria FX turnover surges 117% to $3.73bn in week ended August 7
By Aboki Forex —
Nigeria's foreign exchange market posted total turnover of $3.73 billion in the week ended August 7, 2026, a 117% jump from the previous week. The surge showed continued investor appetite for dollar positioning.
According to FMDQ Exchange's weekly FX market turnover report, spot market deals drove virtually all trading flow. Forward contracts and derivatives remained marginal.
Spot market dominates activity
Spot transactions accounted for $3.70 billion of the total, representing 99.33% of all FX activity. Forward and derivative contracts each recorded $25 million in turnover, showing modest week-on-week growth.
Daily average turnover reached $745.89 million during the week, compared with $343.75 million in the previous week. This indicates sustained intraday demand for immediate currency settlement.
The concentration of activity underscores what market participants have observed throughout 2026. The Nigerian FX market remains heavily skewed toward spot transactions. Forward and derivative instruments accounted for just 1.34% of combined turnover across both segments.
Elevated volumes after record peak
The August 7 spike comes two weeks after the market crossed the $4 billion mark for the first time in 2026. Total transactions in the FX Spot and Derivatives markets reached $4.375 billion in the week ended July 24, 2026.
Weekly turnover figures have been swinging sharply. They moved from $2.836 billion to $1.631 billion to $2.386 billion before hitting $4.375 billion.
August 7 turnover of $3.73 billion suggests the market continues to operate above the $2 billion to $3 billion range that characterised most of July. Weekly turnover had climbed steadily through Q3, from roughly $2.1 billion in mid-June to $3.05 billion by early July, before the late-July spike.
Spot transactions have consistently accounted for more than 98% of weekly turnover. Exchange-traded FX futures remained inactive, leaving over-the-counter forward contracts as the primary hedging instrument.
Forward market remains marginal
The Nigerian Foreign Exchange Market has recorded more than $46 billion in cumulative turnover between March and June 2026. That demonstrates a significant uptrend in market depth.
The forward market's contribution remains marginal at $25 million, or 0.67% of turnover. Despite the surge in spot activity and the apparent need for hedging instruments, market participants continue to prefer spot settlement or execute hedges in less transparent over-the-counter channels outside the formal exchange.
This structural imbalance leaves the market vulnerable to sharp moves when spot liquidity tightens.
Implications for the naira
The August 7 turnover arrives amid significant liquidity management by the Central Bank of Nigeria. The CBN has withdrawn more than N11.8 trillion in July and early August through combined OMO and Treasury Bills auctions.
Market participants will be monitoring elevated FX turnover levels and the implications for exchange rate stability as the CBN navigates Q3.