CDG Capital Insight advocated, in a recent publication, the issue, on the Moroccan financial market, of bonds indexed to inflation by the Treasury.
“An inflation-indexed bond issue by the Moroccan Treasury would mark an important step in the development of the Moroccan financial market. In particular, it would come at the right time to fill a void in terms of financial instruments with protection once morest inflation which might be felt more and more by investors and savers in the current context,” explain the authors of this publication. entitled “Inflation-linked bonds – Opportunity for the Moroccan financial market”.
Moreover, they continue, it would constitute a benchmark for similar issues by public institutions and private companies, thus laying the groundwork for the emergence of a new class of assets in the Moroccan financial landscape.
Beyond the benefits for investors and for the capital market, the Treasury would benefit from a new financing tool giving it an additional degree of freedom for debt management, underline the authors, adding that the evolutions of this new asset class will be a valuable source of information for financial authorities to further inform fiscal and monetary policies.
At the same time, they indicate that the idea of inflation-indexed bonds is certainly not new, because the advantages of having such an instrument might be multiple both for investors and for the Treasury or even certain public establishments as as issuers.
According to the authors, this is to highlight the relevance of such a tool in a context where inflation is eroding the real value of savings, fears of prolonged inflation are growing among investors and the Treasury. faces upside risk in the medium to long-term borrowing curve.
Source: MAP
