Trading activity in Nigeria’s official foreign exchange market experienced a sharp recovery, as weekly turnover nearly doubled to $3.37 billion in the week ended October 9, 2026.
According to weekly market data from the FMDQ Exchange, total dollar value traded jumped 98.2% from $1.70 billion recorded in the previous week, reflecting renewed market liquidity and increased transaction volume.
The Central Bank of Nigeria’s (CBN) ongoing orthodox monetary policy stance served as the primary catalyst, boosting foreign portfolio inflows and encouraging commercial banks to clear pent-up dollar demand.
Substantial foreign capital inflows, alongside the apex bank’s updated Foreign Exchange Manual guidelines, helped cushion systemic tightness and facilitated smoother interbank settlement across authorized dealer channels.
The massive $1.67 billion expansion in weekly turnover completely reversed the preceding week’s 35.4% contraction, signaling renewed institutional confidence and robust spot market participation.
Market analysts attribute the liquidity surge to attractive yields on short-term sovereign paper, particularly after the CBN opened its fourth-quarter treasury bill auctions to mop up excess system liquidity.
The local currency closed near N1,332.49 per US dollar at the official Nigerian Foreign Exchange Market (NFEM), narrowing the spread against parallel market rates to under N50.
This liquidity influx coincides with broader macroeconomic support, including cumulative private capital inflows reaching $6 billion and national gross external reserves consolidating above key operational thresholds.
However, market participants remain watchful of domestic demand pressure and external debt obligations, which could influence interbank supply dynamics as quarter-four corporate import demands escalate.
