The USD/MAD parity was stable this week at 9.99, a 2-year high, according to Attijari Global Research (AGR). “Originally, a basket effect for the MAD of -0.18% offset by a liquidity effect of +0.15%”, explains AGR in its recent note “Weekly Mad Insight-Currencies”, relating to the week going from 02 to 06 May 2022.
The dollar depreciated slightly by 0.03% once morest the dirham over one week but remains at 2-year highs, continues the same source.
Liquidity conditions on the interbank foreign exchange market tightened this week with MAD liquidity spreads of -0.9% once morest -1% a week earlier, notes AGR, explaining this situation by higher import flows in this time of year. The surge in international commodity prices also contributed to the rise in foreign currency imports and therefore to the appreciation of the dollar once morest the dirham.
As a net oil-importing country, the appreciation of international energy prices increases Morocco’s payments in foreign currencies. A situation which, according to AGR analysts, puts pressure on liquidity conditions and on the MAD at ST.
Faced with the volatility of currencies, AGR thus recommends flexible hedging strategies with very ST.
