INTERNATIONAL HIGHLIGHTS
Moroccan banks do not to subscribe to BAM's currency buyback operations for the second week in a row, following calls for tenders on the interbank foreign exchange market.
This situation is due to the visible decline in the foreign exchange position of banks last week to MAD 329 Mn on a weekly average before strengthening MAD 1.4 Bn driven by significant export flows. MAD liquidity spreads widen by -6 BPS at -4.84%, i.e. the lowest level since H2-21.
Due to a basket effect of + 0.64%, the MAD appreciates this week against the dollar by + 0.57% to 9.10.
In a context of high volatility marked by downward pressure on the euro, we recommend reducing the hedging horizon for the dirham.
We recommend hedging export flows in dollars due to the current liquidity conditions of the foreign exchange market and we maintain of our central scenario of MAD appreciation against the dollar.
Please find the outlook for the Dirhams and other currencies in AGR’s latest MAD Insights publication.
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