FMDQ urges deeper hedging markets as FX derivatives stay under 4%
FMDQ Group CEO Zeal Akaraiwe called on Nigerian regulators and market infrastructure to build deeper hedging markets while foreign‑exchange conditions are stable, warning against waiting for another shock. Speaking at a CBN‑hosted investor meeting in Singapore, he noted that the Central Bank has improved credibility and predictability in recent years, but stressed that stability should be a launchpad for innovation, not a sign of stagnation.
Current FMDQ data for the week ended 2 October 2026 shows spot FX transactions at $1.632 billion (96.19% of turnover) and derivatives at just $64.73 million (3.81%). Derivatives turnover rose 65.09% week‑on‑week, yet total FX turnover fell 35.41% to $1.697 billion. With the naira trading around ₦1,330/$ and gross external reserves near an 18‑year high, Akaraiwe urged the introduction of forwards, cross‑currency swaps and eventually options to give investors and businesses tools to manage currency risk.
He also called for technology‑driven exchange‑control monitoring and stronger professional competence across the market. The push forms part of the CBN’s Asia outreach, which includes talks with the Monetary Authority of Singapore and a memorandum with the Global Finance & Technology Network, with further engagements planned in Beijing.
What should you do? If you trade or hold foreign‑currency exposure, explore the existing naira‑settled FX futures and bond futures on FMDQ’s platform, and stay tuned for upcoming hedging products as regulators work to deepen the market.