The USD/MAD pair stabilized at 11.02 during the week from October 17 to 21, with an evolution of +0.05%, according to Attijari Global Research (AGR).
The market effect comes out at +0.15% restrictive for the dirham this period, indicates AGR in its recent note “Weekly Mad Insights – Currencies”.
The foreign exchange position is back in the negative zone this week, going from 396 million dirhams to -1.3 billion dirhams on a weekly average, AGR reports, noting that import flows remain significant given the impact of the rise in energy prices and the increase in the volume of hedging transactions.
Liquidity spreads rose +16 PBS to 4.32% this week following hitting a new Tuesday high of 4.53% during the week. These remain close to the limit of the MAD fluctuation band set at +5.0% and reflect a significant tightening of MAD liquidity, observe AGR analysts.
The persistence of the energy crisis and its inflationary impact weigh on Europe’s growth prospects as well as on the single currency. Under these conditions, volatility remains very high on the foreign exchange market while monetary tightening is accentuated internationally.
In this context of uncertainty, AGR recommends giving priority to hedging the MAD with a reduction in maturities.
