INTERNATIONAL HIGHLIGHTS
The USD/MAD pair fell by -0.29% from 10.11 to 10.08.
This is the 6th consecutive decline on a weekly basis to a 3-month low.
This evolution is due to a negative market effect of -0.42% which was able to largely offset a positive basket effect of +0.13% this week. The latter is related to the appreciation of the Dollar against the Euro this week. This situation could be explained, in our opinion, by a temporary easing of liquidity conditions this week on the interbank foreign exchange market in Morocco.
Under these conditions, the levels of Dirham liquidity spreads fell by -43 BPS (2.22% to 1.79%) under the effect of lower import flows than exports’ this week.
Volatility remains high in the forex market and remains reliant on the next monetary policy decisions of the Fed
and the ECB. The forecasts of international brokers remain in favor of an appreciation of the Dollar compared
to the Euro on the ST.
To this end, we advise investors to hedge their Dollar denominated transactions over 3-month horizons.
Read more.
