Nigeria’s foreign exchange market recorded its strongest weekly performance so far in 2026, as combined turnover in the forex Spot and Derivatives markets surged by 146.12 per cent to $5.06 billion in the week ended August 21, 2026.

The latest figure, obtained from FMDQ Exchange, represents an increase of about $3 billion from the $2.05 billion recorded in the preceding week.

At an average exchange rate of about N1,346.50 to the dollar during the review period, the transactions were equivalent to approximately N6.81 trillion.

The latest performance surpassed the previous 2026 record of $4.375 billion achieved in the week ended July 24.

The latest surge was overwhelmingly driven by spot transactions, which rose by 155.02 per cent to $5.01 billion from $1.96 billion a week earlier.

As a result, spot transactions accounted for 99.03 per cent of total forex turnover, compared with 95.58 per cent in the previous week. Average daily spot turnover also climbed to $1 billion from $443.22 million.

In contrast, the derivatives segment, comprising entirely FX forwards during the week, declined sharply by 46.09 per cent to $49 million from $90.89 million.

Its share of total market turnover consequently fell from 4.42 per cent to just 0.97 per cent, while average daily forwards turnover dropped to $9.8 million from $18.18 million.

The figures indicate that virtually the entire expansion in weekly forex market activity came from the spot market.

Chief Executive Officer of Wyoming Capital Partners Limited, Tajudeen Olayinka, said the scale of dollar supply during the week could indicate significant participation by foreign portfolio investors.

“The quantum of the dollar supply suggests that foreign portfolio investors are likely involved, because local end-users are generally able to source the foreign exchange they require,” Olayinka said.

He added that where domestic demand fails to absorb increased dollar inflows, the Central Bank of Nigeria (CBN) may need to intervene to prevent excessive or unsustainable appreciation of the naira.

“Where local demand does not fully absorb the inflows, the CBN may have to intervene to stabilise the naira and prevent an appreciation that is not supported by underlying productivity or fiscal activity,” he explained.

Olayinka also cautioned that sustained exchange-rate moderation should ideally be accompanied by a corresponding reduction in interest rates to avoid creating structural imbalances in the economy.

Head of Research at GTI Securities Limited, Abiodun Ogunniyi, however, urged caution in interpreting the $5.06 billion figure.

According to him, the figure represents the gross value of transactions processed through FMDQ rather than the amount of fresh capital deployed by investors.

“The $5.06 billion figure represents the gross value of transactions reported through FMDQ, involving banks, their clients, exporters, portfolio investors, end-users and potentially the Central Bank of Nigeria,” Ogunniyi said.

He explained that banks act as major intermediaries in the foreign exchange market, meaning the turnover figure measures the volume of transactions passing through the market rather than the amount ultimately invested or spent by end-users.

“It should therefore not be interpreted to mean that $5.06 billion of new investor or end-user capital was deployed into the market during the week,” he added.

The combination of increased forex activity and relative naira stability suggests improved liquidity conditions, although analysts say the sustainability of the trend will depend on the source and consistency of dollar inflows.