INTERNATIONAL HIGHLIGHTS
The USD/MAD pair fell -0.11% from 10.26 to 10.25 this week.
This evolution is explained by a negative basket effect of -0.23%, more significant than the market effect which came out in positive territory at +0.12%. This situation is mainly explained by the tightening of liquidity conditions on the interbank foreign exchange market in Morocco during the end of the year.
Under these conditions, liquidity spreads’ levels of the dirham tightened by +12 BPS (2.18% to 2.30%) under the effect of import flows which weighed on the MAD liquidity this week.
While the ECB and the Fed took a break from their latest monetary policy meeting, volatility remains very high in
the financial markets.
To this end, we recommend implementing ST hedging strategies. To this end, we advise that importers hedge their operations in USD over 3-month horizons.
Read more.
