Nigeria’s foreign exchange market recorded a significant rebound in trading activity, with total transactions rising to $2.63 billion during the latest reporting period.

The increase was driven largely by stronger participation in both spot and derivatives segments of the market, reflecting improved liquidity and growing activity among market participants.

Market data showed that spot foreign exchange transactions accounted for a substantial share of total turnover, while derivatives trading also contributed significantly to the overall increase in volume.

Analysts said the rebound indicates renewed confidence in the foreign exchange market and suggests that ongoing reforms aimed at improving transparency and efficiency may be supporting increased participation.

The growth in trading activity comes amid efforts by monetary authorities to deepen the foreign exchange market, improve price discovery and provide businesses and investors with additional tools for managing currency risks.

Industry observers noted that increased derivatives activity offers market participants greater flexibility in hedging against exchange rate fluctuations, while stronger spot market volumes help improve liquidity and facilitate foreign exchange transactions.

The latest performance represents an improvement from previous periods and highlights continued activity across Nigeria’s evolving foreign exchange market.

Stakeholders expect further growth in market turnover as reforms continue and investor confidence strengthens, supported by broader efforts to enhance stability and efficiency in the financial system.