Nigeria’s forex turnover nearly doubles to $3.37bn as dollar trading rebounds – Blueprint Newspapers

Nigeria’s Foreign Exchange Trading Surges to $3.37B as Dollar Activity Rebound – Blueprint Newspapers

Nigeria’s foreign exchange market experienced a strong resurgence in trading activity, with dollar transactions rising nearly twofold to $3.37 billion during the week ending October 9, 2026, up from $1.70 billion the prior week.

FMDQ data shows total foreign‑exchange turnover climbed 98.58 percent, generating an extra $1.67 billion in trades and overturning a 35.41 percent drop seen in the prior reporting period.

The revival was principally fueled by spot transactions, which surged 98.37 percent to $3.24 billion, up from $1.63 billion last week, now representing roughly 96 percent of total weekly turnover.

Spot deals involve buying and selling foreign currencies for immediate delivery and serve the primary needs of banks, businesses, and other market participants seeking foreign‑currency coverage.

Forward‑settled trades also expanded sharply, jumping 103.85 percent to $131.95 million from $64.73 million in the preceding week.

Nevertheless, forwards accounted for only 3.92 percent of total turnover, highlighting the dominant role of spot markets in this reporting period.

Overall daily foreign‑exchange trading hit $673.97 million, up from $424.24 million the week before.

These figures mark a return to the volumes achieved in September, when the market logged $3.39 billion in the week ending September 11, though later reports have shown modest declines.

While the turnover rise points to renewed momentum, actual improvements in currency availability and naira stability require further evidence.

“In the near term, the outlook for forex inflows will depend on the resilience of foreign portfolio participation and the recovery of domestic inflows,” Cordros Securities stated.

Cordros Securities, in its weekly economic and market overview for the week ending 9 October 2026, emphasized the necessity of steady inflows from both domestic and foreign currency sources to sustain liquidity.

The research firm highlighted that domestic inflows—from the Central Bank of Nigeria, individuals, non‑bank corporations, exporters, and importers—are vital inputs to the foreign‑exchange market.

Ogunniyi indicated that export earnings, foreign‑portfolio investments, diaspora remittances and foreign direct investment are principal drivers of the foreign‑exchange supply, entering the market via separate channels.

“If the latest increase in turnover is supported by stronger and more consistent inflows, it could improve transactions between buyers and sellers,” Ogunniyi said.

He added that the makeup of foreign‑currency supply will be decisive in determining whether this rebound can be sustained.

The latest rebound signals elevated trading dynamics, yet its implications for exchange‑rate stability will ultimately depend on the robustness of foreign‑currency inflows, dollar demand, and broader macro‑economic conditions ahead.

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