INTERNATIONAL HIGHLIGHTS
The USD/MAD parity is strengthening this week at 10.13. Originally, a significant basket effect for the MAD of +1.03% to which is added a liquidity effect of +0.40%. The dollar thus appreciated by +1.43% against the dirham over one week to its highest since April 2020.
Liquidity conditions on the interbank foreign exchange market have tightened this week with MAD liquidity spreads of -0.5% against -0.9% a week earlier.
This situation is explained by higher import flows at this time of the year. The surge in international commodity prices also contributed to the rise in foreign currency imports and therefore to the appreciation of the dollar against the dirham.
Volatility remains on the foreign exchange market given the strong risk aversion due to the geopolitical context and the monetary policy decisions of the Fed and the ECB.
Given market and liquidity conditions, we recommend that dollar exporters implement hedging strategies over the ST .
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Sur le même thème
MAD Insights may 6th, 2022
The USD/MAD pair crossed the 10 threshold for the first time in 2 years last thursday before closing the week at 9.99. The dirham depreciates against the USD for the 5th consecutive week.
MAD Insights - april 28th, 2022
The Dirham is depreciating this week against the EUR and the USD for the 4th week in a row. This is due to a restrictive liquidity effect of the MAD of +0.27% and a neutral basket effect.
MAD Insights - april 22nd, 2022
and the USD. This is due to a restrictive liquidity effect for the MAD of more than +0.31%. This effect was larger than the basket effect. The USD/MAD and EUR/MAD pairs have increased by +0.54% and +0.16% respectively this week.
