FMDQ market turnover declines in mid-October

The foreign exchange spot and derivatives markets experienced a notable downturn during the week on Friday, with total turnover falling to $2,620.70m. This contraction follows a preceding week of high market activity where trading volumes had surged significantly under ongoing structural reforms by the Central Bank of Nigeria aimed at fostering a transparent, market-driven willing-buyer and willing-seller system.

The latest figures represent a decrease of 22.23 per cent, or $749.15m, from the $3,369.85m reported for the previous week ended 9 October 2026. Market analysts noted that “the week-on-week decrease in total turnover was jointly driven by the 19.83 per cent ($642.09m) decrease in FX Spot transactions… and the 81.14 per cent (107.06m) decrease in FX Derivatives transactions (comprising FX Forward) for the week ended 16 October 2026”.

During this period, FX Spot transactions fell to a total value of $2,595.81m compared to $3,237.90m the prior week, capturing a dominant 99.05 per cent share of the market with a daily average of $519.16m.

• Cardoso: Domestic investors provided 20% of banks’ N4.65trn capital
• Oil sector’s FX demand hits $2.15bn – CBN
• Nigeria spends $1.19bn on food imports in six months

Meanwhile, FX Derivatives turnover plummeted significantly to account for a mere 0.95 per cent share of total market activity.

Overall, the broader contraction brought the market’s daily average turnover down to $524.14m for the week ended 16 October 2026, retreating from the $673.97m daily average recorded the week prior.

This fluctuating liquidity reflects ongoing adjustments within the Nigerian financial markets as participants navigate evolving monetary policy frameworks, shifting capital flows, and macroeconomic pressures influencing foreign exchange availability and foreign portfolio investment dynamics.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.