2023-05-09 20:46:00
The USD/MAD pair continued its downward trend started since mid-March, falling 0.91% to 9.99 during the week from May 1 to May 5, according to Attijari Global Research (AGR).
“The dollar falls below 10 DH for the 1st time since June 2022, down -4.4% since the start of 2022,” AGR said in its recent “Weekly MAD Insights – Currencies” note.
This change is mainly explained by a market effect of -0.69% in connection with the improvement in the liquidity of the MAD and a basket effect of -0.22%, specifies the same source.
He added that MAD liquidity spreads improved to 1.6%, or -71 basis points (bps). This improvement is explained by the positive anticipations regarding the evolution of export flows, in particular transfers from Moroccans residing abroad (MRE) on the sidelines of the summer season.
In addition, AGR points out that expectations of a pause in monetary tightening by the major central banks are currently the main factor influencing the trend of the EUR/USD pair.
In the short term, AGR analysts recommend that dollar importers take advantage of the relatively low levels of the dollar by hedging once morest exchange rate risk.
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