Nigeria’s foreign exchange market posted its strongest weekly turnover so far in 2026, with total transactions in the FX Spot and Derivatives markets surging 146.12 per cent to $5.06 billion in the week ended August 21, 2026, up from $2.05 billion in the previous week.

This is according to the latest weekly FX market turnover report, which Nairametrics obtained from FMDQ Exchange.

At an average exchange rate of about N1,346.50/$ during the week, the figure translates to roughly N6.81 trillion in FX transactions.

The milestone breaks the previous 2026 high of $4.375 billion recorded in the week ended July 24, which was itself described at the time as the market’s strongest weekly showing of the year, driven by what dealers called “mystery deals” linked to Dangote Refinery’s brief switch to dollar-denominated pricing.

While the FX Spot recorded an unprecedented increase, the Derivatives and Forwards margins tumbled by nearly half compared to the previous week’s turnover.

Total FX turnover stood at $5.06 billion, up 146.12 per cent, or about $3.00 billion, from $2.05 billion the previous week.

Average daily turnover was $1.01 billion, up from $461.40 million.

FX Spot transactions rose to $5.01 billion, up 155.02 per cent, or about $3.05 billion, from $1.96 billion.

FX Derivatives, entirely FX Forwards, fell to $49.00 million, down 46.09 per cent, or $41.89 million, from $90.89 million.

Spot market share stood at 99.03 per cent of total turnover, up from 95.58 per cent the previous week.

Forwards’ share of total turnover fell to 0.97 per cent, down from 4.42 per cent.

Average daily spot turnover was $1.00 billion, up from $443.22 million.

Average daily forwards turnover fell to $9.80 million, down from $18.18 million.

The scale of the jump in spot activity, roughly $3.05 billion week-on-week, actually exceeds the $3.00 billion net increase in total turnover.

In effect, spot transactions accounted for more than 100 per cent of the market’s net weekly growth, leaving less than $1 out of every $100 traded to forward contracts.

Weekly FX turnover has swung sharply through the third quarter of 2026, oscillating between multi-week lows and successive records.

Turnover stood at $2.32 billion in the week ended June 19.

It rose to $2.84 billion in the week ended June 26, up 22.06 per cent.

It climbed to $3.053 billion in the week ended July 3, then the highest in three months.

It crashed to $1.631 billion in the week ended July 10, a 46.57 per cent decline.

It rebounded to $2.386 billion in the week ended July 17, a rebound of roughly 46 per cent.

It surged to $4.375 billion in the week ended July 24, then the first 2026 reading above $4 billion.

It pulled back sharply to $1.72 billion in the week ended July 31.

It rebounded to $3.73 billion in the week ended August 7, a 117 per cent rebound.

It fell to $2.05 billion in the week ended August 14, down 44.9 per cent.

It rose to $5.06 billion in the week ended August 21, a new 2026 high.

Beyond the FMDQ weekly figures, NAFEM turnover on the Central Bank’s platform doubled to about N4.52 billion between August 17 and 21, as the naira strengthened 0.84 per cent to close at N1,346.90/$, a separate measure of official market activity that points in the same direction as the FMDQ data.

While Spot activity accelerated, the forwards segment moved the other way, a remarkable contrast from a 263.56 per cent surge seen in the prior week ended August 14, 2026.

FX forwards fell by $41.89 million to $49.00 million, cutting the segment’s share of total turnover to 0.97 per cent from 4.42 per cent.

Average daily Forwards turnover slipped to $9.80 million from $18.18 million.

During the week ended August 14, the FX derivatives market recorded its sharpest weekly surge, with FX Forwards turnover jumping 263.56 per cent to $90.89 million in that week.

This was in spite of the broader FX market’s 44.9 per cent steep decline in total turnover at $2.055 billion, down by $1.675 billion from $3.729 billion the week before, largely due to a collapse in spot transactions in that week that saw average daily turnover at its lowest of $461.40 million, down from $745.89 million.

The Chief Executive Officer, Wyoming Capital Partners Limited, Mr. Tajudeen Olayinka, said the scale of dollar supply suggests that foreign portfolio investors were likely behind a significant portion of the inflows, while the CBN may have stepped in to manage excess supply and prevent an unsustainable naira appreciation.

“The quantum of the dollar supply suggests that foreign portfolio investors are likely involved, because local end-users are generally able to source the foreign exchange they require,” said the investment expert.

“Where local demand does not fully absorb the inflows, the CBN may have to intervene to stabilise the naira and prevent an appreciation that is not supported by underlying productivity or fiscal activity,” Olayinka explained.

“A sustained moderation in the exchange rate should ideally be accompanied by a corresponding moderation in interest rates to avoid creating structural imbalances,” he added.

The Head of Research at GTI Securities Limited, Abiodun Ogunniyi, explained that the $5.06 billion turnover figure reflects the gross value of transactions processed through the FMDQ market and should not be interpreted as the actual amount of capital deployed by investors or end-users.

“The $5.06 billion figure represents the gross value of transactions reported through FMDQ, involving banks, their clients, exporters, portfolio investors, end-users and potentially the Central Bank of Nigeria.”

“Because banks serve as central intermediaries in the market, the figure measures transaction activity and turnover much more than the actual amount of capital ultimately deployed by investors or end-users.”

“It should therefore not be interpreted to mean that $5.06 billion of new investor or end-user capital was deployed into the market during the week.”

According to Ogunniyi, the figure merely represents broad market transactions through FMDQ involving banks, their clients, exporters, portfolio investors, end-users and potentially the Central Bank of Nigeria (CBN).

FMDQ’s cumulative turnover for the January–July 2026 period reached N426.51 trillion ($310.18 billion), with FX transactions among the leading drivers alongside OMO Bills.

Spot transactions have consistently accounted for more than 95 per cent of weekly FX turnover through the third quarter.

Forward contracts have remained the market’s primary, though comparatively thin, hedging instrument.

With turnover now at its highest weekly level since 2026, the coming weeks will help clarify whether the surge in spot activity reflects a sustained improvement in market liquidity or another temporary spike, as has been the pattern through July and August.