INTERNATIONAL HIGHLIGHTS
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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Sur le même thème
MAD Insights - november 11th, 2022
The dollar is back above 11 MAD this week, appreciating by +1.03%. This is due to a double basket/liquidity effect unfavorable to the MAD, i.e. +0.86% and +0.17% respectively.
MAD Insights - november 4th, 2022
The USD/MAD pair is depreciating to 10.91 this week, posting a significant decline of -1.07%. While the liquidity effect was almost neutral during this period, most of the change in the MAD is explained by a basket effect of -1.16%.
MAD Insights - october 27th, 2022
The USD/MAD pair is stabilizing at 11.02 this week with a change of +0.05%. The market effect comes out at +0.15% restrictive for the dirham this period.
