Total turnover in the foreign exchange market reported by FMDQ Securities Exchange experienced a sharp decline for the week ended Friday, 14 August 2026, falling 44.90 per cent to $2,054.89m compared to $3,729.44m recorded in the week ended 7 August 2026.

This contraction represents a week-on-week loss of $1,674.55m across the FX Spot and Derivatives markets. The downturn comes amid ongoing fluctuations in local liquidity demand, where interbank authorised dealers and their corporate clients regularly adjust foreign currency exposures based on immediate trade obligations and broader economic indicators.

The overall contraction in market activity was primarily driven by a significant reduction in FX Spot transactions, which serve as the primary window for immediate foreign currency settlement. Spot trading turnover contracted 46.98 per cent, dropping from $3,704.44m to $1,964.00m.

Consequently, the daily average for FX Spot transactions slipped from $740.89m to $443.22m, reducing its share of total market activity from 99.33 per cent to 95.58 per cent.

In contrast to the spot segment, the FX Derivatives market experienced substantial growth, reflecting a shift by market participants toward risk management and hedging strategies.

Derivatives turnover surged 263.56 per cent, rising from $25.00m in the prior week to $90.89m for the week ended 14 August 2026. This expansion was entirely driven by the FX Forwards market, which also grew 263.56 per cent ($65.89m), lifting the daily average for derivatives from $5.00m to $18.18m and increasing its market share from 0.67 per cent to 4.42 per cent.

Overall, the total daily average turnover across both market segments fell from $745.89m to $461.40m over the reporting period.

Despite the notable rally in forward contracts as institutions sought to lock in future exchange rates, it was insufficient to offset the heavy drop in spot trading, leading to a net decline in overall financial market activity.