INTERNATIONAL HIGHLIGHTS
The Dollar appreciated strongly against the Dirham this week by +2.58% to 10.4395, driven by a double basket effect of +0.55% and a liquidity effect of  +2.03%.

The liquidity effect was strongly unfavorable to the MAD. The sharp fall in the EUR/USD pair prompted several operators to hedge the foreign exchange risk by forward contracts. These currency hedging operations
led to a significant drop in the liquidity of the Dirham, propelling liquidity spreads into positive territory at 0.5% against -1.5% a week earlier.

For its part, the foreign exchange position of banks remained stable this week around MAD -6.9 Bn on a
weekly average.

Inflationary pressures and ECB monetary tightening in July reinforce the scenario of a recession in the Euro
Zone, thus inducing high volatility in the EUR/USD.

Given the current levels of the MAD, we recommend that exporters in Dollars hedge their exchange rate
risk on their international operations on very ST horizons.


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