INTERNATIONAL HIGHLIGHTS
The Dollar depreciated against the Dirham this weekby -1.74% to 10.2579. This favorable variation for the Dirham is explained by a double basket effect of -0.63% following the rebound of the Euro internationally and a liquidity effect of -1.11%.
This high volatility of the EUR/USD parity has prompted several operators to hedge the exchange risk by forward purchase contracts on foreign currencies. These significant hedges led to a visible widening of the banks' foreign exchange position to MAD -7.6 Bn against MAD -6.7 Bn the previous week.
At the end of this week, the Dirham liquidity spreads stood at -0.6%, up 112 BPS compared to the previous
week.
Inflationary pressures and monetary tightening are making the scenario of a recession in the euro zone
more likely, thus inducing high volatility in the EUR/USD parity.
Given the current levels of the MAD, we recommend that exporters in Dollar reduce their hedging horizons
on the MAD.
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