INTERNATIONAL HIGHLIGHTS
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. This is due to a restrictive basket effect for the MAD of +1.58% against an almost neutral liquidity effect of 0.06%. The dollar thus appreciated by +1.64%, the strongest weekly increase of the year.
The tightening of liquidity on the interbank foreign exchange market led to an increase in MAD liquidity spreads from -1.1% to -1.0% over the week. We note a drop in the banks' foreign exchange position, down from -3.5 to MAD -4.1 billion on a weekly average.
Volatility remains 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 the market conditions and low MAD levels, we recommend that dollar exporters implement flexible hedging strategies over the short turn.
Read more.
