NAFEM turnover rises to $1.41bn as FX activity rebounds

Turnover on the Nigerian Foreign Exchange Market rose to $1.41bn on 17 August, 2026, marking the highest level in five weeks as trading activity recovered from the sharp decline recorded earlier in the month.

Data from the Central Bank of Nigeria showed that the latest turnover was more than seven times the $185m recorded on 11 August.

The 17 August figure was the highest since 21 July, when NAFEM turnover stood at $1.53bn.

The market recorded 394 deals during the session, including 178 interbank transactions.

The increase followed significant fluctuations in FX activity over recent trading sessions. Turnover rose to $607.47m on 12 August after falling to the 11-week low of $185m on 11 August.

Activity subsequently declined to $387.09m on 13 August and $352.34m on 14 August before surging to $1.41bn on 17 August.

The increase in market activity was accompanied by a stronger naira at the official FX market.

The currency closed at N1,350 per dollar on 17 August, compared with N1,358.25/$ at the previous session.

This represented an N8.25 appreciation against the dollar.

The weighted average exchange rate was N1,349.54/, while the simple average stood at N1,350.98/.

The latest closing rate was also stronger than the N1,365/$ recorded on 11 August, when NAFEM turnover reached its recent low.

According to an emerging markets expert, there is a need for the sustenance of this trend to deepen the FX market.

“The increase in NAFEM turnover is encouraging, but the key issue is whether the higher level of activity can be sustained. A few large transactions can significantly distort daily turnover, so we need to see consistent volumes over several trading sessions before concluding that market liquidity has materially improved,” he warned.

The latest FX market development comes as Nigeria’s external reserves remain at elevated levels.

The CBN data showed that reserves reached $52.02bn on 20 July 2026, the highest level since January 2009.

The reserve position had already exceeded the CBN’s December projection of $51.04bn for the full year.(Punch)