Foreign exchange turnover on the Nigerian Foreign Exchange Market (NFEM) dropped sharply to $184.99 million on Tuesday, August 11, 2026, its lowest level in 11 weeks, as trading activity weakened significantly.
Data from the Central Bank of Nigeria (CBN) showed that turnover declined by about $461.5 million from the $646.51 million recorded on Monday, representing a drop of more than 71 per cent.
The latest figure is the lowest NFEM turnover recorded since May 25, when transactions stood at $175.34 million.
Despite the sharp decline in market activity, the naira weakened only marginally against the dollar, closing at N1,365 per dollar on Tuesday compared with N1,361.50 on Monday.
The currency traded between N1,361 and N1,365.50 per dollar during the session, with a weighted average rate of N1,364.8992.
Deals fall sharply
The decline in turnover was accompanied by a significant reduction in the number of transactions executed in the official FX market.
According to the CBN data, the number of deals fell to 186 on Tuesday from 348 on Monday. Interbank transactions also dropped sharply, declining from 182 deals to just 47.
The subdued activity contrasts with stronger trading earlier in August. NFEM turnover exceeded $1.24 billion on August 7 before falling to $878.55 million on August 6 and $460.14 million on August 5.
The latest figures highlight the volatility in trading volumes even as the naira has remained within a relatively narrow range around N1,360-N1,370 per dollar in recent sessions.
Global market developments
The decline in Nigeria’s FX market activity came amid heightened attention in global currency markets to US inflation, interest-rate expectations and geopolitical developments.
The dollar index rose 0.1 per cent to 99.89 in Asian trading, while Brent crude gained 0.9 per cent to $89.69 a barrel amid renewed tensions around shipping routes in the Middle East.
The euro weakened 0.1 per cent to $1.1534, while the Japanese yen fell 0.1 per cent to 159.44 per dollar. The British pound remained broadly unchanged at $1.3505.
For Nigeria, movements in global oil and currency markets remain significant because crude oil earnings are an important source of foreign exchange supply.
The sharp drop in NFEM turnover therefore points to a quieter official FX market, even though the naira has so far remained relatively stable against the dollar.
With additional information from Nairametrics
