INTERNATIONAL HIGHLIGHTS
The MAD appreciates this week against the dollar.
The USD/MAD pair evolved by -0.45%, going from 10.44 to 10.39 in one week.
This change is explained by a basket effect of -0.24% and a market effect of -0.21% related to a slight improvement in the liquidity conditions of the dirham.
Dirham liquidity spreads fell -21 BPS this week to 3.49%. This drop could be explained by expectations of a gradual rebalancing of import and export flows on the ST horizon.
On the ST, EUR/USD volatility remains mainly sensitive to expectations of Fed and ECB rate decisions. This week, these expectations were disrupted following the crisis in the banking sector in the United States and Europe.
We recommend that dollar exporters increase their level of hedging to hedge against expected dollar volatility.
Read more.
