Nigeria forex turnover falls 22% to $2.62bn as spot, forward trades drop

The value of dollars traded in Nigeria’s foreign exchange market fell 22.23% to $2.62 billion in the week ended October 16, 2026, down from $3.37 billion the prior week, according to the FMDQ report. Spot transactions, which involve immediate delivery, dropped 19.83% to $2.60 billion, while forward contracts—used to lock in future exchange rates—plunged 81.14% to just $24.89 million. Forward trading now accounts for less than 1% of total turnover, compared with nearly 4% the week before.

The decline follows a massive 98.58% surge the previous week, showing continued volatility. Average daily market turnover slipped to $524.14 million from $673.97 million. Despite the drop, weekly turnover remains 54.43% above the low recorded in early October. The naira appreciated slightly across forward tenors, gaining 1 to 65 basis points, even as the spot rate weakened 0.1% week-on-week to N1,333.09/USD after a CBN intervention of $430.60 million.

For businesses and importers, the swing means higher uncertainty in budgeting for foreign payments. Forward contracts, a tool to hedge against naira moves, are being used far less, potentially exposing firms to exchange‑rate risk. With foreign exchange demand at a 15‑year high, especially for services and financial payments, the naira may stay near current levels if reserves stay strong, but lower domestic yields and tighter global conditions pose downside risks.

Will you rely more on spot purchases, revisit your hedging strategy, or hold foreign‑currency reserves to buffer against future swings?

SOURCE: https://nairametrics.com/2026/10/19/nigerias-dollar-trading-slumps-22-to-2-62-billion-as-forward-deals-plunge/