The bank liquidity deficit widened by 11.2%, during the period from February 3 to 9, 2022, to stand at -79.2 billion dirhams (MMDH) on a weekly average, according to BMCE Capital Global Research ( BKGR).
“The bank liquidity deficit widened by +11.2% to settle at -79.2 billion dirhams on a weekly average, while Bank Al-Maghrib slightly reduced its 7-day advances from 35.8 billion dirhams to 34 MMDH”, indicates BKGR in its recent note “Fixed income weekly”. At the same time, Treasury investments increased considerably from 15.4 billion dirhams to 21.7 billion dirhams, BKGR said, noting that the weighted average rate continues to be stable at 1.50% while the MONIA stands at 1.425%.
During this week and faced with a request of nearly 9.302 billion dirhams, the Treasury carried out two collections on the 5-year and 15-year lines for an amount of 1.8 billion dirhams and 200 million dirhams (MDH) respectively, at the limit rates of 2.1256% and 2.6653%. As for the primary curve, the 5- and 15-year rates posted drops of 4 basis points (bps) and 0.3 bps respectively. The note also indicates that the overall volume drained on the secondary market decreased by 28% to 12.3 billion dirhams. In terms of structure, the transaction flow was polarized up to 43% by long-term maturities.
For secondary rates, the most significant variations concern the 20-year line with a fall of -8.1 bps to 2.81% and the 15-year line with a rise of 5.3 bps to 2.66%. Over the next period, BAM should reduce its monetary system with the issuance of 30.4 billion dirhams in the form of 7-day advances, down 3.6 billion dirhams compared to the previous week, according to the same source.
The increase in treasury investments and the drop in its needs announced for the month of February (8.5 billion dirhams), suggest an easing of the pressure on public finances observed in January, estimates BKGR, noting that as a result, a return to stability of the primary rate curve is expected in the coming days.