Trading activity in Nigeria’s foreign exchange market weakened considerably during the week ended July 10, 2026, as transaction volumes across the spot and derivatives segments declined sharply, according to the latest data released by FMDQ Exchange.
The exchange reported total foreign exchange market turnover of $1.63 billion for the review period, representing a decline of almost 50 percent from the previous week’s $3.05 billion.
The contraction reflects a significant reduction in market liquidity and trading participation over the period.
The decline was driven largely by weaker activity in the FX spot market, which continued to account for the overwhelming majority of transactions despite the slowdown.
Trading volumes in the derivatives segment also declined, reflecting softer demand for hedging instruments among market participants.
FMDQ stated that lower turnover in FX forwards contributed to the overall decline in derivatives trading, while exchange-traded FX futures recorded no activity during the week under review.
The slowdown also affected average daily market turnover. Average daily transactions fell substantially compared to the preceding week, indicating reduced trading momentum across the foreign exchange market.
Although trading activity moderated, the spot market remained the dominant segment, accounting for the bulk of all transactions executed during the week, while forward contracts represented only a small share of total market turnover.
Market analysts said fluctuations in liquidity are common in Nigeria’s foreign exchange market and are often influenced by corporate demand, portfolio adjustments, foreign exchange supply and broader monetary conditions.
The latest figures come as investors continue to monitor the direction of exchange rate policy, foreign portfolio flows and liquidity conditions in anticipation of further guidance from monetary authorities.