Morocco’s dirham experienced a mixed performance against major currencies during the week of February 5th to February 11th, , according to Bank Al-Maghrib (BAM), the country’s central bank. The dirham appreciated by 0.5% against the US dollar but depreciated by 0.1% against the euro over the same period.
The central bank reported no foreign exchange auction operations were conducted during the week. This suggests a relatively stable foreign exchange market with limited intervention required from BAM to manage the dirham’s value.
Morocco’s official reserve assets stood at 454.3 billion dirhams (MMDH) as of . This represents a 0.4% increase from the previous week and a substantial 23.1% increase year-on-year, indicating a strengthening of Morocco’s foreign exchange reserves.
BAM’s interventions during the week totaled an average of 152.6 MMDH per day. These interventions took the form of seven-day advances amounting to 60.6 MMDH, longer-term loans (pensions) totaling 53.3 MMDH, and guaranteed loans of 38.7 MMDH. These figures provide insight into BAM’s liquidity management operations and its support for the financial system.
Activity on the interbank market saw an average daily trading volume of 2.2 MMDH, with the average interbank rate settling at 2.25%. This indicates relatively stable short-term funding conditions within the Moroccan banking sector.
On (value date ), the central bank injected 55.2 MMDH into the system through seven-day advances. This injection of liquidity is a standard practice by central banks to ensure sufficient funds are available to commercial banks.
The Moroccan All Shares Index (MASI) experienced a decline of 0.5% between February 5th and February 11th, . The index’s year-to-date performance currently stands at a negative 2.6%, reflecting broader market headwinds.
Sectoral performance within the MASI was varied. The “Transport Services” index fell by 2%, while the “Building and Construction Materials” index decreased by 0.7%. More significant declines were observed in the “Health” sector (-3.5%), “Electricity” (-3.1%), and “Mines” (-1.2%). However, the “Banks” index bucked the trend, posting a gain of 0.5% during the week. This divergence suggests differing investor sentiment towards various sectors of the Moroccan economy.
Weekly trading volume increased from 2 MMDH to 2.4 MMDH. Of this total, 1.7 MMDH was traded on the central equity market, 450 million dirhams (MDH) related to a capital increase for RISMA, and 240.3 MDH was executed on the block market. The increase in overall volume suggests heightened investor activity, potentially driven by the RISMA capital increase.
Recent data from exchange-rates.org indicates a downward trend in the Moroccan dirham against the US dollar over the past six months, with a decrease of 1.42% as of . The highest exchange rate during this period was 0.1116 USD on , while the lowest was 0.1074 USD on . As of , 1 Moroccan Dirham equals 0.1094 US Dollars.
Wise.com data shows the USD/MAD exchange rate fluctuated between 9.1933 (high on ) and 9.1045 (low on ) during the past week. The largest 24-hour decrease occurred on , with a decline of 0.316%. Currently, the exchange rate is 9.13575, a decrease of 0.138% since the previous day.
The interplay between these factors – BAM’s interventions, reserve levels, market activity, and currency fluctuations – paints a picture of a Moroccan economy navigating a complex global landscape. The appreciation against the dollar, while modest, could benefit importers, while the depreciation against the euro may impact trade with European partners. The continued growth in reserve assets provides a buffer against external shocks, while the MASI’s performance reflects ongoing investor caution.
