2023-11-11 18:19:34
In the fluctuating economic landscape of October 2023, the Moroccan dirham experienced contrasting movements against major global currencies.
According to the latest data from Bank Al-Maghrib (BAM), the national currency depreciated by 0.71% against the US dollar between September and October 2023. At the same time, against the euro, the dirham recorded an appreciation of 0.56% during the same period, a development which reflects the complex dynamics of the foreign exchange market.
This duality in the performance of the dirham highlights the challenges and opportunities for the Moroccan economy in a constantly evolving international context. The depreciation against the dollar could have significant implications for Morocco, particularly in terms of the cost of imports from the United States and the repayment of debt denominated in dollars. On the other hand, the appreciation against the euro can be seen as a positive sign, potentially reducing costs for imports from the euro zone and improving the competitiveness of Moroccan exporters in these markets.
The BAM review also highlighted that no foreign exchange auction sessions with banks have been organized since December 2021, indicating relative stability in the central bank’s interventions in the foreign exchange market.
READ ALSO: Moroccan banks facing increasing liquidity pressure in October 2023
On the interbank market, exchanges of currencies against dirhams showed a substantial increase, with a total volume of 83.9 billion dirhams (billion dirhams) in October 2023, marking an increase of 49.5% compared to the previous year. . This increased activity in the foreign exchange market could reflect a response by market participants to domestic currency movements, as well as global economic conditions.
Regarding the banks’ operations with their customers, the volume of transactions in October amounted to MAD 32.6 billion for spot purchases and MAD 20.3 billion for term purchases. As for sales, they concerned an amount of 34.4 billion dirhams for spot transactions and 3.3 billion dirhams for forward transactions. These figures, compared to previous months, show significant variations which could indicate an adjustment of currency hedging and risk management strategies on the part of banks and their clients.
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