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August 26, 2026 - 3:07 PM

Nigeria FX Turnover Hits $2.32 Billion as Investors Increase Currency Hedging

Nigeria’s foreign exchange market recorded stronger trading activity last week, with total turnover rising to $2.32 billion despite a sharp decline in the local equities market.

The News Chronicle reports that data from FMDQ Securities Exchange showed FX transactions increased by 7.7 per cent in the week ended June 19, 2026, compared to $2.16 billion recorded in the previous week.

 

Increased activity in the spot market, which represents more than 98 percent of all transactions, mostly drove the growth. Reflecting ongoing demand from companies, importers, and financial institutions looking for foreign money, spot market trade volume increased to $2.29 billion.

 

The sharp increase in forward contracts, up over 130 per cent to $36.14 million, was a major event during the week. Market experts see the rise as a clue that locked-in future exchange rates are helping companies and investors to better guard themselves against possible naira changes..

 

The stronger FX performance came at a time when the Nigerian stock market experienced one of its steepest weekly declines of the year.

The trend suggests that currency market activity was driven by demand for foreign exchange and risk management strategies rather than movements in the equities market, highlighting continued confidence in the use of hedging instruments within Nigeria’s evolving exchange rate system.

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