By Peace Udugba — The Daily Torch Media
Nigeria’s foreign exchange (FX) market recorded a sharp decline in trading activity in the week ended October 2, 2026, as total turnover across the FX Spot and Derivatives markets fell by 35.41 per cent to $1.697 billion, according to the latest report by FMDQ.
The decline amounted to $930.18 million compared with the $2.627 billion recorded in the preceding week ended September 25, 2026.
The figures were contained in the FMDQ Foreign Exchange Market Analysis Report for the week ended October 2, 2026, scheduled for publication on Monday, October 5.
FX Spot Transactions Drive Turnover Decline
According to the report, the fall in overall foreign exchange market turnover was driven by a significant reduction in FX Spot transactions during the review period.
FX Spot turnover declined by 36.93 per cent, representing a decrease of $955.70 million from the previous week’s level.
The contraction in spot transactions outweighed the growth recorded in the FX Derivatives segment, resulting in a substantial week-on-week decline in total market turnover.
FX Spot transactions generally involve the exchange of currencies at prevailing market rates, while activity in this segment provides an indication of immediate foreign exchange trading.
FX Derivatives Transactions Rise by 65%
Despite the overall decline in foreign exchange turnover, the FX Derivatives market recorded an increase during the week under review.
FMDQ reported that turnover in FX Derivatives transactions, comprising FX Forward contracts, rose by 65.09 per cent, representing an increase of $25.52 million.
The growth offered a contrast to the sharp decline in spot-market transactions, although it was insufficient to prevent total turnover from falling.
FX Forward contracts allow market participants to agree on an exchange rate for a currency transaction to be settled at a future date, helping businesses and other participants manage foreign exchange exposure.
What the Latest FX Figures Reveal
The latest figures highlight a marked slowdown in aggregate trading activity across the FX Spot and Derivatives markets during the week ended October 2.
However, the reported decline in turnover does not, on its own, establish whether foreign exchange liquidity deteriorated, whether demand for foreign currency weakened or whether the naira appreciated or depreciated during the period.
Those conclusions would require additional information, including exchange-rate movements, transaction volumes, market liquidity indicators and the breakdown of trading activity.
For businesses with foreign currency obligations, importers, exporters and investors, developments in the foreign exchange market remain important because they can influence transaction costs, financial planning and exposure to currency movements.
FMDQ’s weekly market analysis provides data on foreign exchange transactions between banks, authorised dealers and their clients, offering market participants insight into trading activity over the reporting period.
Table 1: Weekly FX Turnover Analysis
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FMDQ, Nigeria FX Market, Foreign Exchange, FX Turnover, Naira, FX Spot, FX Derivatives, FX Forward, FMDQ Report, Nigerian Economy, Currency Market, Business News
