INTERNATIONAL HIGHLIGHTS
The dirham depreciated against its benchmark basket following the sharp deterioration in liquidity in the interbank foreign exchange market. Attests to this the restrictive MAD liquidity effect of 0.64%. To this effect, the USD/MAD pair appreciates by +0.29% to 10.2880.
The banking foreign exchange position shows a drop in banks' foreign currency holdings to MAD -7.6 Bn. Originally, significant foreign currency commitments in connection with currency hedging operations.
Under these conditions, MAD liquidity spreads are moving up into positive territory at +0.04%, against -0.60% a week earlier, at the expense of the Dirham.
The risks of recession in developed economies (Europe & USA) following monetary tightening by central banks are raising risk aversion in the financial markets.
Considering current MAD levels and liquidity spreads, we anticipate growing interest in hedging in order to deal with increased volatility of the MAD.
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