The dollar is back below MAD 11 this week, with an evolution of -2.44%. Originally, a basket effect favorable to the MAD of -2.67%. The liquidity effect came out at +0.23%, detrimental to the MAD.

The foreign exchange position widened to MAD -3.1 Bn on a weekly average against MAD -1.1 Bn a week
earlier. Import flows remain significant given the impact of the rise in energy prices and the increase in the volume of hedging transactions.

Liquidity spreads hit a new high at 4.86% on Monday before closing at 4.83% up 24 BPS this week. These
spreads very close to the 5.0% limit reflect a significant tightening of MAD liquidity.

Uncertainties related to the evolution of inflation and the pace of monetary tightening of the Fed and the ECB
induce high volatility on the foreign exchange market.
In this context, we recommend that Corporates considerably reduce their hedging horizons on the MAD.

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