INTERNATIONAL HIGHLIGHTS
The Dirham depreciated jointly against the Dollar and the Euro penalized by a significant liquidity effect. The market effect comes out at +0.25%, justifying the variation of the USD/MAD pair by +0.18% to more than 10.30.
Moreover, the effects of foreign currency inflows during this summer period were felt on banks' foreign currency liquidity. The average bank exchange position stands at MAD -5.4 Bn against MAD -6.7 Bn a week earlier.
As for MAD liquidity spreads, they continue to move up by +25 PBS to +0.29% against +0.04% last week.
Concerns about global growth prospects are gaining more and more ground. Indeed, the tightening of Financial conditions on an international scale as well as the persistence of high inflation induce high volatility in the foreign exchange market.
We recommend that dollar exporters reduce their hedging horizons.
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