INTERNATIONAL HIGHLIGHTS
The USD/MAD pair fell for the 5th consecutive week by -0.07% to 10.55 this week. This is above a than
3-month low.
This is due to a negative basket effect of -0.13% given the weakening of the dollar internationally and a liquidity effect of +0.06% against the MAD.
Liquidity spreads remain almost stable this week, going from 4.54% to 4.60%, an increase of +5 BBS. The
banks' foreign exchange position rose to MAD 2.0 bn on a weekly average. Nevertheless, import flows remain significant due to the impact of the hike of import prices as well as the increase in hedging transactions.
Uncertainties linked to the geopolitical context and the orientations of international monetary policies are
weighing on the economic outlook.
This induces high volatility on the foreign exchange market. Consequently, we recommend that Corporates
reduce their hedging horizons on the MAD.
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