Trading activities on the FMDQ Exchange rose to N362.8 trillion in the first half of 2026, with foreign exchange and money market transactions accounting for the bulk of market turnover.
Latest data released by FMDQ at the weekend showed that total turnover between January and June stood at N362.8 trillion, indicating strong activity across the foreign exchange, fixed income and money markets despite changing economic conditions.
The foreign exchange market, comprising spot FX and FX derivatives, remained the largest contributor to trading activity, accounting for 36.57 per cent of the total turnover.
The strong performance reflects sustained demand for foreign exchange by businesses and investors as well as increased hedging activities aimed at managing exchange rate risks in an environment of continued currency market reforms.
Open Market Operation (OMO) bills accounted for 31.35 per cent of the total turnover, underscoring investors’ preference for high-yield, short-term instruments as the monetary authority maintained a tight monetary stance to curb inflation and stabilise the naira.
The attractive returns on OMO bills also encouraged banks and institutional investors to channel excess liquidity into the market.
Repurchase Agreements (Repos) contributed 13.21 per cent of the overall turnover, indicating that financial institutions continued to rely heavily on the repo market to meet their short-term funding needs and manage liquidity efficiently.
The bond market accounted for 9.54 per cent of total transactions, while treasury bills (TBs) represented 8.61 per cent.
Trading in unsecured placements and takings made up the remaining 0.71 per cent of market turnover.
Analysts said the dominance of foreign exchange and money market instruments reflects investors’ cautious approach amid elevated interest rates, inflation concerns and evolving monetary policies.
