The dirham appreciated once morest the US dollar thanks to the basket effect, during the week from May 16 to 20, 2022, indicates Attijari Global Research (AGR).
“Faced with an insignificant liquidity effect, the rise in the single currency (Euro) supported the appreciation of the dirham once morest the dollar”, indicates AGR in its recent note “Weekly Mad Insights – Currencies”.
Thus, the USD/MAD parity depreciated this week to 10.02, i.e. a weekly drop of -1.15% once morest the dirham, specifies AGR, explaining this situation by “a double negative effect for the dirham: a basket of -1.06% and a market effect of -0.09%”.
Liquidity conditions on the interbank foreign exchange market remained almost stable with dirham liquidity spreads at -0.6% once morest -0.5% a week earlier, adds the same source, noting that this slight improvement is due relatively larger export flows than import flows.
In addition, AGR points out that volatility remains in the forex market, given the strong risk aversion linked to the geopolitical context and the monetary policy decisions of the American Federal Reserve (Fed) and the European Central Bank. (ECB).
In view of market and liquidity conditions, AGR analysts therefore recommend that dollar exporters set up short-term hedging strategies.