Nigeria's FX Market Turnover Drops 21% to $2.41 Billion

In the first week of September, trading activity in Nigeria's official foreign exchange market significantly weakened, with total turnover declining by 21.38% to $2.41 billion, as reported by FMDQ Securities Exchange. The total FX turnover was $2,414.85 million for the week ending September 4, down by $656.67 million from $3,071.52 million recorded in the previous week ending August 28.

The spot market, which constituted the majority of FX transactions, saw a 20.55% decline in turnover, falling to $2,344.20 million from $2,950.56 million, a reduction of approximately $606.36 million. Spot transactions accounted for 97.07% of total FX turnover.

Average daily spot turnover also decreased to $468.84 million from $737.64 million. The derivatives segment, which includes FX forwards, experienced a more significant contraction of 41.59%, with turnover dropping to $70.65 million from $120.96 million.

The Central Bank of Nigeria is actively working to improve market liquidity and stabilize the foreign exchange market, although the recent decline does not necessarily indicate a worsening overall FX position.