INTERNATIONAL HIGHLIGHTS
The Dirham appreciates this week against the Dollar and the Euro. The EUR/MAD and USD/MAD parities thus fell by -1.34% and -1.10% respectively. This is due to a restrictive liquidity effect larger than that of the basket effect of -1.25% this week.
MAD liquidity spreads narrowed this week from -0.2% to -1.5%. This is due to the increase in Export operations on the market following the interesting levels of the MAD the previous week.
For its part, the foreign exchange position of banks is improving from MAD -5.3 billion on weekly average to MAD -4.6 billion this week.
Uncertainties around the situation in Europe and energy prices are fueling currency volatility. Against several benchmark currencies, the MAD's volatility threshold exceeded 13% over 1 month, i.e. the highest levels ever reached since the start of the Covid-19
crisis.
In this context, we recommend reducing the hedging horizons of MAD to ST.
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