INTERNATIONAL HIGHLIGHTS
The USD/MAD parity is settling this week at 9.99. This is due to a basket effect for the MAD of -0.18% offset by a liquidity effect of +0.15%. The USD depreciated slightly by -0.03% against the dirham over one Week but remains at 2-year highs.
Liquidity conditions in the interbank foreign exchange market have tightened this week with MAD liquidity spreads at -0.9% vs -1.0% a week earlier. This situation is explained by higher import flows at this time of the year. The surge in prices of MPs internationally has also contributed to the increase in foreign currency imports and therefore to the appreciation of the Dollar against the Dirham.
As a net oil-importing country, the appreciation of international energy prices increases Morocco's payments in foreign currencies. This situation puts pressure on liquidity conditions and on the MAD at ST.
In the current volatile currency markets, we recommend very ST flexible hedging strategies.
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