INTERNATIONAL HIGHLIGHTS
The MAD is depreciating this week against the USD.
The USD/MAD pair evolves by +0.34%. The basket effect stands at +1.07%, offsetting the liquidity effect.
Liquidity conditions in the interbank foreign exchange market have improved this week. This is an increase in the foreign exchange position of banks from -4.2 billion dirhams on average weekly to -2.9 billion dirhams this week.
At the same time, the Dirham's liquidity spreads came out in negative territory this week and widened by -72
BPS, going from -0.9% to -1.7%, i.e. a 1-month low.
The uncertainties surrounding the situation in Ukraine and the impacts on economic growth in Europe are fueling currency volatility.
The MAD volatility threshold has reached its highest since the start of the Covid-19 crisis. In this context, we recommend considerably reducing the hedging horizons on the MAD.
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