INTERNATIONAL HIGHLIGHTS
The USD/MAD depreciated this week by -0.47% from 10.15 to 10.10.
This evolution is mainly explained by a negative basket effect of -1.00% following the depreciation of the Dollar
internationally this week. The liquidity effect, for its part, comes out positive at +0.53% to the disadvantage of the MAD. This is due to the increase in liquidity spreads of +54 PBS up from 1.92% to 2.46%. This situation could be explained by a tightening of liquidity conditions on the interbank foreign exchange market in Morocco. According to our discussions with the trading floor, import flows were relatively superior to those from exports this week.
The markets experienced very high volatility at the end of the week following the Fed's declarations regarding the start of the monetary pivot through Fed Funds rate cuts from Q1-24. Brokers' forecasts are in favor of an appreciation of the Dollar against the Euro on the ST.
To this end, we recommend investors to hedge their Dollar transactions over 1 to 3 months.
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