BREAKING: Nigeria’s dollar trading plunges to $1.81 billion as turnover declines 51%

The value of dollars traded in Nigeria’s foreign exchange market fell by 51.29% to $1.81 billion in the week ended November 6, 2026, from $3.71 billion in the preceding week, representing a decline of approximately $1.90 billion.

According to the latest FMDQ report tracking foreign exchange transactions between authorised dealers and their customers, the decline exceeded the 46.57% drop recorded in the week ended July 10, which Nairametrics previously reported as the sharpest weekly fall of 2026 at the time.

Average daily FX turnover also declined to $361.67 million from $742.51 million, reflecting a substantial slowdown in trading activity across the market.

Spot foreign exchange transactions accounted for most of the decline in Nigeria’s weekly dollar turnover, falling by 50.91% to $1.79 billion from $3.64 billion.

The segment, which covers transactions involving near-immediate delivery of foreign currency, recorded a weekly reduction of approximately $1.85 billion.

The derivatives segment also recorded a significant contraction, with forward transactions declining by 69.93% to $22.20 million from $73.83 million.

Forward contracts accounted for 1.23% of total turnover, down from 1.99% in the preceding week.

Average daily derivatives turnover fell to $4.44 million from $14.77 million, while the segment contributed approximately $51.63 million to the weekly decline.

The reported forward turnover represents contracts executed during the week rather than the value of outstanding forward positions.

Together, the spot and forward figures show that the contraction affected both immediate dollar transactions and forward-market activity.

The naira depreciated by approximately 0.1% week-on-week to N1,349.00 per dollar despite a $50 million intervention by the Central Bank of Nigeria.

Nairametrics had earlier reported that the currency weakened from N1,329.50 per dollar at the end of September to approximately N1,346 per dollar by October 30.

The latest FX figures therefore show a further modest depreciation in the naira, even as dollar trading volumes declined substantially.

Analysts expect the naira to remain relatively stable in the near term, although they identified risks that could limit further appreciation.

Cordros Securities based its outlook on Nigeria’s foreign exchange reserves and continued current account surplus, while cautioning that changes in domestic yields and global financial conditions could affect portfolio investment flows.

Cordros warned that lower domestic yields or tighter global financial conditions could weigh on portfolio flows into Nigeria.

Cowry Asset Management also identified sustained dollar demand, seasonal payment obligations and crude oil prices as factors that could limit near-term naira appreciation.

Market attention is expected to shift towards the next inflation report and the Monetary Policy Committee’s interest-rate decision later in November.

This week, Treasury Bills maturities of N148.57 billion and Open Market Operations maturities of N774.53 billion are expected.

The combined maturities amount to approximately N923.10 billion and will form part of the liquidity developments monitored by market participants. The direction of the naira will remain sensitive to foreign exchange demand, portfolio flows and broader financial market conditions.

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