INTERNATIONAL HIGHLIGHTS
The MAD continues to appreciate against the US dollar for the second week in a row. USD/MAD stands at 10.72, down -0.31% in one week.

The foreign exchange position shows a deficit of MAD -3.2 bn on a weekly average. Import flows are significant due to the impact of the rise in energy product prices and the increase in hedging transactions.

Liquidity spreads hit a new all-time high at 4.99% up 16 BPS this week. These reflect a significant tightening of the MAD's liquidity. This situation could encourage BAM to intervene using FX auctions to sell foreign currencies on the interbank foreign exchange market.

The uncertainties related to the geopolitical context are weighing on growth prospects and therefore 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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