Kiosk360. Last week, the money market experienced an easing of the bank liquidity deficit. The primary market did not record any raising of the Treasury while the secondary market was characterized by an increase in volume. This article is a press review taken from the daily Les Inspirations Eco.
The alleviation of the bank liquidity deficit continues from one week to the next. After a reduction observed from July 18 to 24, analysts at BMCE Capital Global Research (BKGR) announce a new reduction during the following week, reports the daily. Eco Inspirations in its August 2 edition.
For the week of July 25, the bank liquidity deficit seems to be continuing its downward trend, standing at -97 billion dirhams, once morest -100.3 billion dirhams the previous week. In its recent “Fixed income weekly” note, BKGR states that when it comes to Treasury investments, the research firm notes that “these are emerging higher, as indicated by the maximum daily stock of 6, 72 billion dirhams as of July 27, once morest a maximum daily outstanding amount of 4.92 billion dirhams the previous week.
“Regarding the weighted average rate of the money market (TMP), it is still stabilizing at 1.5%, while the MONIA (Editor’s note, Moroccan Overnight Index Average: overnight benchmark monetary index, calculated on the basis of transactions of repos delivered with Treasury bonds as collateral), stood at 1.437% once morest 1.434% the week before.
BKGR notes that the Treasury did not raise any money during the week of July 28. Indeed, the primary rate curve shows no variation. In terms of volume, BKGR analysts indicate that at the end of the previous period, “the overall volume recorded on the secondary market continued to rise”.
“It stood at 9.5 billion dirhams, once morest 7.8 billion dirhams a week earlier. The latter is polarized up to 38% by exchanges on medium-term maturities, according to the research company”, indicates the daily.
In addition, with regard to the analysis of the secondary curve, it should be noted that the largest variations (ranging from June 21, 2022 to July 27, 2022) were recorded downwards on the 5-year line, with -2 basis points at 2.23%. There is also an increase on the 10-year line, with 11.2 bps recorded at a rate of 2.59%.
In their monetary forecasts for the coming period, BMCE Capital Global Research analysts believe that Bank Al-Maghrib should reduce its intervention in the money market, with the injection of only 38.3 billion dirhams in the form of advances to 7 days once morest 41.7 billion dirhams a week earlier.
With regard to bond forecasts, the research firm noted that the Treasury still seems to be in a comfortable position since it continues to benefit from strong tax receipts at the end of June. This should allow primary rates to remain at a relatively stable level.
