FX Market Turnover Surges to Record $4.4bn
Foreign exchange market has recorded its highest weekly turnover in 2026, crossing the $4 billion mark for the first time.
According to the FMDQ Exchange weekly report, total FX transactions surged 83.38% to $4.375 billion in the week ended July 24, up from $2.386 billion the previous week.
The milestone comes just weeks after turnover peaked at $3.053 billion in early July. Analysts say the sharp rise may have been driven by large private-sector transactions and foreign portfolio inflows, though speculation persists about “mystery deals.”
An insider at the Financial Market Dealers Association (FMDA) linked the surge to the Dangote Refinery’s temporary policy of selling petroleum products in U.S. dollars, which lasted about a week before being reversed.
“You know there was temporary dollar pricing for Dangote Refinery products. This is the reason for the sharp rise in dollar turnover,” the source said.
Breakdown of the week’s activity showed FX Spot transactions: $4.312 billion, up 81.85% from $2.371 billion, FX Derivatives (Forwards): $62.87 million, up 333.59% from $14.50 million, and Average daily turnover: $875 million, nearly double the previous week.
Chief Executive Officer of Wyoming Capital Partners Limited, Tajudeen Olayinka, suggested the spike was likely due to one-off deals.
“I want to believe there must have been a special transaction. Some of these investors are actually foreign portfolio investors. The fact that interest rates remain high means they continue to benefit from what Nigeria is able to offer, so they keep coming,” he said.
He added that the surge in forward contracts alongside spot demand indicates investors were hedging risks.
“If somebody is selling in the spot market, they may also be buying forwards so they can hedge and be certain of the rate at which they will repatriate their money. That’s why I’m suspecting a link. It might have been a special transaction,” Olayinka explained.
The record turnover coincided with the refinery’s brief dollar-pricing policy, which analysts believe boosted demand for FX and hedging activity. Though the policy was quickly reversed, the timing suggests it contributed to the spike.
Beyond this, the Nigerian FX market has continued to deepen, recording more than $46 billion in cumulative turnover between March and June 2026, with spot transactions consistently accounting for over 98% of weekly activity.
Culled from Nairametrics