INTERNATIONAL HIGHLIGHTS
The USD/MAD pair appreciated by +0.68% to 11.02 this week. Originally, a double Basket & Market effect
of +0.39% and +0.29% respectively.
Despite a slight improvement in the foreign exchange position of banks in Morocco, liquidity conditions on the Moroccan foreign exchange market have tightened. Dirham liquidity spreads increased by +30 BPS to 4.16% this week. The latter remain at historic highs approaching the upper range of the MAD fluctuation band set at +5.0%.
The basket effect was unfavorable to the MAD and is explained by an appreciation of the dollar internationally following the release of US inflation figures.
The great uncertainties surrounding the growth prospects of the world economy and the risk of recession in Europe make it more complex to draw up reliable forecasts on the foreign exchange market.
For example, the sharp reversal in the trend of the EUR/USD pair after rallying at the start of the week.
Thus, we recommend reducing hedging maturities.
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