EXECUTIVE SUMMARY
The USD/MAD pair appreciated this week by +0.48%,
from 9.83 to 9.88.
This evolution is mainly explained by a positive basket effect. This comes out at +0.53% after the appreciation of the Dollar against the Euro this week. The market effect, for its part, comes out to less significant at -0.05%, i.e. a marginal impact in favor of the Dirham.
The liquidity spreads of the Dirham have thus relaxed from -5 BPS to -0.87% this week. The balance of export and import flows has made it possible to maintain these spreads in negative territory. However, the latter should readjust upwards over a 3-month horizon.
The election of the new administration in the United States would determine important decisions in geopolitics and international trade. Markets would revise their expectations, which fuels the FX markets’ volatility.
Taking into account the new forecasts on the foreign exchange market, we recommend importers to hedge their foreign currency transactions over a 3-month horizon.
Bonne lecture.
