INTERNATIONAL HIGHLIGHTS
Taking into account $ 88 Mn BAM currency buyback program from local banks this week, the cumulative amount of interventions on the interbank foreign exchange market since last September stands at MAD 6.8 Bn. However, the foreign exchange position of the banks is in surplus at MAD 3 Bn. MAD's liquidity spreads remain at levels close to the lower limit of -4.98%. Originally, expectations of a resumption of import flows allowing a balance in exchange in foreign currencies on the market.
The rise of the dollar continues to drive the MAD. To this end, the pair USD/MAD crosses a 10-month high this week at 9.1.
Taking into account the liquidity conditions of the foreign exchange market and the occasional rise in the dollar, we recommend that exporters hedge their exports in dollars, with the prospect of a reversal of the USD/MAD trend.
Please find the outlook for the Dirhams and other currencies in AGR’s latest MAD Insights publication.
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