Nigeria’s foreign exchange market experienced a significant contraction in the week ending October 2, 2026, with total turnover falling 35.4% to $1.7 billion. The decline was driven by a $956 million drop in spot transactions, while derivatives turnover grew by 65% to $64.7 million. Despite a $100 million intervention by the Central Bank of Nigeria (CBN), increased market demand and the impact of the recent 350-basis point cut in the Monetary Policy Rate to 23% have pressured liquidity, raising concerns about the sustainability of foreign portfolio inflows in a lower-yield environment.