FX turnover sheds $749m as forward deals crash 81%

The value of dollar transactions in Nigeria’s foreign exchange market fell by 22.23 per cent to $2.62bn in the week ended 16 October 2026, from $3.37bn recorded the previous week.

The decline followed a slowdown in direct dollar trading and a sharp drop in forward transactions, according to data from FMDQ, which tracks FX deals between authorised dealers and their customers.

Total trading fell by $749.15m during the week, reversing part of the increase recorded in the previous week.

Forward transactions, which allow businesses to agree on an exchange rate today for a currency deal at a future date, dropped by 81.14 per cent to $24.89m from $131.95m.

The transactions accounted for just 0.95 per cent of total dollar trading during the week, compared with 3.92 per cent a week earlier.

Average daily forward transactions also fell sharply to $4.98m from $26.39m.

Forward contracts help businesses manage exchange rate risks. For instance, a Nigerian importer expecting to pay a foreign supplier in three months can lock in an exchange rate to know how much naira will be needed for the payment.

The latest figures measure forward deals completed during the week, not the total value of outstanding contracts.

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Spot transactions, which involve buying or selling dollars for near-immediate delivery, fell by 19.83 per cent to $2.60bn from $3.24bn.

The decline amounted to $642.09m, accounting for most of the reduction in total FX trading.

Spot deals represented 99.05 per cent of all transactions during the week, up from 96.08 per cent in the previous week.

Average daily spot trading fell to $519.16m from $647.58m, while average daily turnover across the market dropped to $524.14m from $673.97m.

Despite the weekly decline, total dollar trading remained above the $1.70bn recorded in the week ended 2 October.

The latest turnover was 54.43 per cent higher than the 2 October figure, although that week had four trading days, compared with five trading days in the weeks ended 9 October 9 and 16 October.

The decline in weekly trading comes against a backdrop of strong demand for foreign exchange in Nigeria.

The FX demand had reached a 15-year high of $18.34bn in the second quarter of 2026, driven largely by payments for services and financial transactions.