INTERNATIONAL HIGHLIGHTS
The MAD is depreciating this week against the dollar.
The USD/MAD pair increased by +0.45% from 10.39 to 10.44.
This evolution is explained by a basket effect of +0.11% and a market effect of +0.34% related to the tightening of liquidity conditions for the dirham.
Dirham liquidity spreads increased by +35 PBS this week to 3.71% to 3-month highs. This is due to a high
volatility in the foreign exchange market in anticipation of the monetary policy meetings of the Fed and the ECB in March.
In this context, we have noted an increase in the volumes of import hedging transactions.
On the ST, EUR/USD volatility remains mainly sensitive to expectations of Fed and ECB rate decisions.
We recommend that dollar exporters increase their level of hedging in order to hedge against the expected
volatility of the US dollar.
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