Nigeria FX Turnover Rebounds as Spot Trading Drives FMDQ Activity
By Aboki Forex —
Nigeria's foreign exchange market recorded a notable increase in activity in the latest week, driven by stronger trading across both the spot and derivatives markets. Total turnover across the FX Spot and Derivatives markets rose from the level recorded in the previous week ended 18 September.
The increase marked a rebound in the official FX market after a sharp drop in the previous week. Total turnover fell from nearly $3.4 billion to $2.37 billion in that week, according to market data. The decline was linked to temporary weakness in derivatives activity.
Spot market leads the recovery
The FX Spot market drove the latest weekly increase. Spot trading continues to account for the vast majority of official foreign exchange trading in Nigeria. Spot transactions rose from $2.34 billion in the week ended 18 September. Daily average spot turnover also increased, with spot transactions accounting for most of the activity.
Derivatives activity had weakened in the prior week, but the latest data shows trading recovered across both segments of the market.
FMDQ activity expands after CBN reforms
Over the past two years, FX activity on the FMDQ Exchange platform has expanded significantly. The growth followed structural reforms initiated by the Central Bank of Nigeria. These include the adoption of a market-driven system, order-based quotation platforms and the clearance of legacy FX backlogs.
The reforms have helped improve liquidity, support diaspora remittance flows and enable commercial banks and their corporate clients to execute larger transactions without relying heavily on direct central bank intervention.
What it means for the naira
The rebound in official FX turnover points to stronger trading through the FMDQ platform. Sustained spot and derivatives activity can support liquidity in the official foreign exchange market. For Nigerian businesses and consumers, continued improvement in official market liquidity matters for dollar availability and pricing.