Nigeria’s foreign exchange market recorded a sharp increase in trading activity, with total turnover on the FMDQ platform rising to $2.84 billion, reflecting a 22% week-on-week increase as demand for foreign exchange transactions strengthened across both spot and derivatives markets. The latest figures underscore growing liquidity in the country’s FX market and continued participation from banks, corporates, and other market players.
According to market data from FMDQ Securities Exchange, the surge in turnover was largely driven by stronger activity in the spot market, which remains the dominant segment of Nigeria’s foreign exchange ecosystem. The increase suggests that businesses and financial institutions are becoming more active in managing currency exposures amid evolving economic conditions and exchange rate dynamics.
The latest performance follows a broader trend of improving activity in Nigeria’s FX market. In recent weeks, turnover has continued to rise as market reforms aimed at improving transparency, liquidity, and price discovery gain traction. Previous FMDQ data had already shown turnover climbing above $2.3 billion, with growing participation in both spot and forward transactions.
Analysts note that the increase in trading volumes reflects stronger confidence among market participants and a greater willingness to utilize formal foreign exchange channels. The growth in turnover also highlights increasing demand for currency hedging instruments as businesses seek protection against exchange-rate volatility.
The foreign exchange market remains a critical component of Nigeria’s financial system, influencing import costs, investment flows, inflation trends, and overall economic stability. Higher turnover levels are often viewed as a sign of improved market liquidity, allowing participants to execute transactions more efficiently while supporting price discovery.
As policymakers continue efforts to strengthen the country’s foreign exchange framework, market observers will be closely watching whether the recent momentum can be sustained in the coming weeks. Continued growth in turnover could signal deeper market participation and stronger confidence in Nigeria’s evolving FX landscape.
