Nigeria FX Turnover Soars 117% to $3.73bn
Nigeria’s official foreign exchange market recorded a sharp rebound in trading activity last week, with turnover jumping 117 per cent to $3.73 billion as demand for dollar liquidity strengthened.
Figures from FMDQ Exchange showed that the market’s weekly turnover surged from $1.72 billion in the preceding week, while average daily transactions more than doubled to $745.89 million from $343.75 million.
Despite the strong rebound, the latest figure remained below the $4.38 billion weekly record posted in the period ended July 24, highlighting the increasingly volatile pace of activity in the formal FX market.
Spot transactions dominated trading during the week, accounting for $3.70 billion, or 99.33 per cent, of total turnover. Forward and derivative transactions contributed roughly $25 million each.
The renewed activity comes as the Central Bank of Nigeria continues efforts to manage naira liquidity and strengthen stability in the foreign exchange market.
The apex bank reportedly mopped up more than ₦11.8 trillion through Open Market Operations and Treasury Bills auctions in July and early August, seeking to reduce excess liquidity within the financial system.
However, the jump in FX turnover suggests that demand for foreign currency remains resilient among banks, importers, businesses, investors and other market participants despite tighter monetary conditions.
On August 7, the final trading day of the week, the official Nigerian Foreign Exchange Market rate closed at ₦1,365.69 to the dollar. Interbank transactions reached $393.48 million across 107 deals, reflecting continued activity among market participants.
The increased turnover also comes amid efforts by the CBN to improve price discovery, strengthen market transparency and attract foreign exchange inflows through reforms to the official FX market.
Nigeria has also recorded stronger capital inflows, with data from the National Bureau of Statistics showing that capital importation rose 88.5 per cent year-on-year to $23.21 billion in 2025, driven largely by portfolio investments.
Market watchers say maintaining adequate dollar liquidity, improving transparency and sustaining investor confidence will be crucial to preserving recent gains in the FX market.
However, continued demand for foreign currency and the need to protect the country’s external reserves could remain key pressure points for the naira.
The latest turnover figures nevertheless point to a significantly busier official FX market, reflecting increased participation and renewed appetite for dollar transactions.
