The USD/MAD (US dollar/dirham) pair reached a 20-year high, according to the “Weekly Mad Insights – Currencies” note from Attijari Global Research, which covers the period from August 29 to September 02.
“The dirham depreciates this week once morest the dollar in connection with a double basket-liquidity effect. The USD/MAD pair appreciates by 0.37% to 10.5870 in one week, i.e. its highest level since 2002 “, indicates the same source.
In more detail, the market effect comes out at +0.28% following a tightening of liquidity conditions. The basket effect, meanwhile, stands at +0.09% under the effect of the appreciation of the greenback internationally.
Despite the improvement in the exchange position, which is moving into positive territory, liquidity spreads are up +28 basis points (bps) to 1.57% at the end of this week. Indeed, investors anticipate larger import flows in the short term (ST).
Also, AGR points out that energy supply fears are weighing on growth prospects in Europe following the shutdown of the Nord Stream 1 gas pipeline. This situation is fueling the volatility of the EUR/USD pair.
Under these conditions, AGR’s analysts recommend that investors pursue their strategies for hedging their exchange rate risk on CT horizons.
