EXECUTIVE SUMMARY
The USD/MAD pair depreciated this week by -0.57% from 10.06 to 10.00 after remaining above 10 MAD throughout the week.
At the origin of this development, a negative basket effect which comes out at -0.77% in connection with the rebound of the Euro this week. The market effect, for its part, comes out positive this week at +0.20%.
The liquidity spreads of the MAD have thus tightened by +19 BPS to -0.84%. The good performance of export flows has made it possible to maintain these spreads in negative territory. The latter should readjust slightly upwards over the next 3 months.
The election of Trump in the United States and the escalation of tensions between Russia and Ukraine have led to a rally to the Dollar. The impact of Trump’s tariff increases on the economy and inflation remains uncertain.
Given the uncertainties and volatility of the foreign exchange market, we recommend that traders hedge their operations over a 3-month horizon.
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