INTERNATIONAL HIGHLIGHTS
Following currency buyback operations carried out last week by BAM at the level of the interbank foreign exchange market, the banks' foreign exchange position remains in surplus at more than MAD 3 Bn. Remember that BAM's intervention covered more than MAD 6 Bn.
MAD liquidity spreads hold up at levels close to the lower limit of -4.99%. Originally, expectations of a resumption of import flows which would balance the interbank foreign exchange market.
Taking into account a basket effect, the USD/MAD crosses upwards the MAD 9.0. In consequence, the MAD depreciated this week by -0.8% against the dollar in a context where the liquidity effect is almost neutral.
Taking into account the liquidity conditions of the foreign exchange market and the one-time rise in the dollar, we recommend that importers wait until the USD/MAD trend reverses. Our scenario anticipates a return of the USD / MAD parity below the threshold of 9.0 during the next 3 months.
Please find the outlook for the Dirhams and other currencies in AGR’s latest MAD Insights publication.
Read more.
