INTERNATIONAL HIGHLIGHTS
The USD/MAD appreciated this week by +0.75% after 3 weeks of successive declines, going from 9.68 to 9.75.
This is due to a double positive effect, i.e. a positive basket effect of +0.56% related with the correction of the Euro internationally and a positive liquidity effect of +0.19%.
Liquidity spreads increased by 19 BPS from -0.38% to -0.19% this week. The latter remain negative at one-year lows, supported by the export flows of tourist activity and workers’ remittances which characterize the summer period.
Despite the downward correction in EUR/USD, we anticipate a decline in the USD/MAD parity over a very ST horizon and we recommend that exporters hedge over a 1-month horizon.
The MAD appreciation should be supported by a positive market effect due to the increase in export flows during
the summer period.
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