Nigeria’s foreign exchange market recorded a sharp decline in trading activity during the second week of July, with total turnover dropping by 46.57 percent to $1.63 billion, down from $3.05 billion a week earlier.
Data released by FMDQ showed that both the spot and derivatives segments experienced lower activity, while the average daily turnover also declined significantly, reflecting reduced participation across the official market.
The News Chronicle reports that the slowdown follows three consecutive weeks of strong FX activity, pushing weekly turnover above the $3 billion mark. Market analysts believe the latest figures point to a return to normal trading levels after an unusually busy start to July rather than a sign of weakening market liquidity.
Spot transactions remained the largest contributor to market activity despite falling to $1.58 billion, while FX forwards also declined to $51.22 million as demand for foreign exchange eased.
Experts attribute the drop to lower import financing needs, reduced interbank trading, and a temporary slowdown in corporate demand for foreign currency. Despite the weekly decline, Nigeria’s foreign exchange market continues to operate under the unified exchange rate framework introduced by the Central Bank of Nigeria in 2023.
