The Dirham is depreciating this week against the Dollar following a double basket-liquidity effect. The USD/MAD appreciated by +0.54% to 10.17 in one week, its highest level since the beginning of June 2023.
In detail, the market effect stands at +0.75% following a tightening of liquidity conditions. The basket effect, for its part, stands at -0.21%.
MAD liquidity spreads continue to tighten, going from 1.66% to 2.42% in one week, up 76 PBS. Indeed, the end of the summer period, characterized by a significant flow of workers’ remittances, had a negative impact on export flows during this period.
Investors are closely scrutinizing Fed and ECB monetary policy decisions. This situation fuels currency volatility.
At the same time, tensions over the dirham liquidity are increasingly visible. This situation could increase the
USD/MAD volatility at ST.
Under these conditions, we advise investors to favor ST hedging horizons.