INTERNATIONAL HIGHLIGHTS
The MAD depreciated this week against the greenback in a foreign exchange market marked by significant import flows at the end of the year. The banks foreign exchange position was in negative territory at MAD -3.6 Bn, thus bringing the liquidity spreads to their highest since the end of April 2021. The latter are established above the -4.0 % to -3.96%, up by +26 BPS from the previous week.
Taking into account the double negative effect (basket and liquidity), the Dirham went above 9.28 against the Dollar. Financial markets coexist today with several sources of uncertainty, particularly the impacts the Omicron variant and the recent acceleration in inflation. This situation results in high volatility on the Moroccan foreign exchange market, increasing vigilance. We recommend Corporates adopting very ST hedging strategies.
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