INTERNATIONAL HIGHLIGHTS
The dirham depreciates for the third consecutive week against the dollar, following the uptrend of the greenback internationally. Thus, the pair USD/MAD stands at 9.20, an annual high.
The liquidity spread between the MAD benchmark and its central price is narrowing this week. It stands at -4.89%, the lowest during H2-21. This is due to market expectations for a resumption of export flows over the ST. For its part, the foreign exchange position goes back to negative territory given the foreign currency purchase from BAM of MAD 55 Mn a week earlier.
In a context of high EUR/USD volatility, we recommend adopting hedging strategies over the ST.
Nonetheless, we maintain our central scenario of MAD appreciation against the dollar over the next three months.
Please find the outlook for the Dirhams and other currencies in AGR’s latest MAD Insights publication.
Read more.
