June 22 (THEWILL) — Nigeria’s foreign exchange (FX) market recorded stronger activity in the week ended June 19, 2026, with total turnover across the FX Spot and Derivatives segments rising by 7.7 percent week-on-week to $2.323 billion, according to data released by FMDQ Securities Exchange.
The latest figures show that turnover increased by $166.05 million from $2.157 billion recorded in the previous week, reflecting stronger participation across both the spot and derivatives markets.
While the FX Spot segment remained the dominant driver of activity, the sharp rise in FX Forward transactions pointed to growing demand for currency risk management amid heightened uncertainty in the broader financial markets.
Data from FMDQ’s weekly turnover report revealed that FX Spot transactions accounted for 98.44 percent of total market activity, rising 6.8 percent to $2.286 billion from $2.141 billion in the preceding week.
Despite the increase in aggregate turnover, average daily spot market activity eased to $457.39 million from $535.32 million, suggesting that trading volumes were concentrated within a shorter effective trading window.
The derivatives market recorded the strongest growth during the period. FX Forward transactions surged by 129.8 percent to $36.14 million, up from $15.73 million a week earlier, increasing their share of total turnover to 1.56 percent from 0.73 percent .
Market analysts view the sharp increase in forward contracts as a sign that corporates, importers, and financial institutions are increasingly seeking to hedge against potential naira volatility.
FX Forwards allow market participants to lock in exchange rates for future transactions, helping to manage exposure to currency fluctuations.
Notably, exchange-traded FX Futures remained inactive for a second consecutive week, underscoring continued preference for spot transactions and over-the-counter forward contracts.
The rise in FX market activity came despite a sharp correction in the Nigerian equities market, where the NGX All-Share Index declined by 3.59 percent during the same period.
The divergence suggests that foreign exchange market activity was largely driven by underlying factors such as import demand, corporate funding requirements, and interbank positioning rather than equity market sentiment.
The FMDQ data, which captures transactions between dealing member banks, authorised dealers, and their clients, remains the most comprehensive indicator of activity in Nigeria’s official FX market.
Since the adoption of a unified, market-determined exchange rate framework by the Central Bank of Nigeria in June 2023, movements in the foreign exchange market have remained closely watched due to their implications for inflation, import costs, corporate profitability, and broader economic stability.
The latest turnover figures indicate that while spot transactions continue to dominate market activity, demand for hedging instruments is rising as participants seek greater protection against exchange-rate volatility.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
