INTERNATIONAL HIGHLIGHTS
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%. The latter is linked to the weakening of the dollar internationally.
The foreign exchange position stands at -1.1 billion dirhams on a weekly average this week. Originally, significant import flows supported by a positive price effect on commodity prices.
Liquidity spreads increased slightly by +9 PBS to 4.41% this week. These remain close to the limit of the MAD fluctuation band set at +5.0% and reflect a significant tightening of MAD liquidity.
The persistence of inflation is weighing on growth prospects in Europe and on the single currency.
Volatility remains very high on the foreign exchange market fueled by speculation on the monetary orientations of central banks.
In this context of uncertainty, we recommend giving priority to hedging the MAD at lower maturities.
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