INTERNATIONAL HIGHLIGHTS
The rise of the single currency has supported the appreciation of the MAD against the dollar as the market effect was insignificant. The USD/MAD parity depreciated this week to 10.02, ie a weekly drop of -1.15% against the dirham this week. This is due to a double negative effect for the MAD: a basket effect of -1.06% and a market effect of -0.09%.
Liquidity conditions on the interbank foreign exchange market remained quasi-stable with MAD liquidity spreads at -0.6% against -0.5% a week earlier.
This slight improvement is due to relatively larger export flows than import flows.
Volatility remains significant on the foreign exchange market given the strong risk aversion linked 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 at
ST.
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