Turnover at Nigeria’s official foreign exchange market (NFEM) fell by 61.1 per cent to $227.18 million on November 2, marking its first drop below $300 million since September 28, despite relative stability in the naira’s exchange rate.
Data from the Central Bank of Nigeria (CBN), as reported by Nairametrics, showed that transactions at the Nigerian Foreign Exchange Market (NFEM) declined from $583.33 million recorded on October 30 to $227.18 million in the first trading session of November.
The latest turnover was the lowest since September 28, when the market recorded $196.68 million in transactions.
The decline represents a sharp moderation in foreign exchange trading activity following a relatively active October, during which daily transactions frequently exceeded $400 million and occasionally crossed $1 billion.
On October 29, NFEM turnover stood at $458.91 million, while transactions reached $726.33 million on October 28. The market recorded its highest daily turnover for October on the 23rd, at approximately $3.24 billion.
Of the $227.18 million traded on November 2, interbank transactions accounted for about $21.77 million.
The number of deals also declined to 177 from 252 recorded in the preceding trading session, reflecting reduced market activity.
Despite the contraction in turnover, the naira remained relatively stable at the official market, closing at N1,346.01 to the dollar on November 2, compared with N1,346 recorded on October 30.
The market’s weighted average exchange rate stood at N1,347.94 per dollar, while the highest and lowest rates were N1,349.50 and N1,346, respectively.
The decline in trading activity comes amid developments in Nigeria’s external reserves and foreign exchange supply.
Nigeria’s gross external reserves increased by $295.35 million in October, representing the slowest monthly growth recorded so far in 2026.
Meanwhile, the country’s net foreign reserves reportedly rose to a record $46 billion.
The naira also surrendered part of its recent gains, weakening from N1,329.50 per dollar at the end of September to about N1,346 by October 30.
Although the latest figures point to a substantial reduction in daily foreign exchange transactions, the relatively unchanged exchange rate suggests that the decline in turnover has not translated into a corresponding sharp movement in the naira.
However, the November 2 figures alone are insufficient to establish whether the slowdown represents a sustained change in foreign exchange market liquidity.
Source: Nairametrics
