Nigeria FX turnover hits $3.73bn on dollar demand surge

Nigeria's foreign exchange market posted a dramatic week-on-week surge in trading activity, with total turnover reaching $3.73 billion in the week ended August 7, 2026, more than double the $1.72 billion recorded the previous week.

The 117 percent jump, reported by FMDQ Exchange in its weekly FX market turnover report, signals sustained investor appetite for dollar exposure in Africa's largest economy. Daily average turnover climbed to $745.89 million, up from $343.75 million a week earlier.

Contents

01

A week of doubled activity

02

Spot market's near-total grip

03

CBN's liquidity squeeze

04

Where the naira stands

A week of doubled activity

The $3.73 billion weekly total marks a sharp rebound from the prior week's subdued $1.72 billion, though it fell short of the record $4.375 billion set in the week ended July 24, 2026. That late-July peak remains the highest weekly turnover on record for Nigeria's FX Spot and Derivatives markets.

The Nigerian Foreign Exchange Market has been deepening steadily. Between March and June 2026, cumulative turnover exceeded $46 billion, reflecting growing participation and liquidity in the official window.

Spot market's near-total grip

Spot transactions accounted for $3.70 billion of the week's total, representing 99.33 percent of all foreign exchange activity. The overwhelming dominance of spot deals underscores the market's structural reliance on immediate settlement instruments.

Forward contracts and derivatives remained marginal. Each recorded just $25 million in turnover for the week, with the forward market contributing a mere 0.67 percent of total activity. While both instruments showed growth compared to prior periods, their combined share barely registered against the spot market's near-monopoly.

CBN's liquidity squeeze

The Central Bank of Nigeria has been aggressively absorbing excess cash from the banking system. Through combined Open Market Operations and Treasury Bills auctions in July and early August 2026 alone, the CBN withdrew more than N11.8 trillion.

This liquidity tightening forms part of the central bank's broader effort to manage inflationary pressure and stabilise the naira, even as dollar demand continues to drive heavy turnover in the official FX window.

Where the naira stands

On August 7, the final trading day of the reporting week, the CBN's official Nigerian Foreign Exchange Market rate stood at N1,365.69 per US dollar. Interbank turnover that day reached $393.48 million across 107 deals, according to data published on the central bank's website.

The NFEM rate is derived as a volume-weighted average and serves as Nigeria's official exchange rate for the day. The CBN publishes these figures daily as part of its commitment to price transparency in the foreign exchange market.