The banks’ foreign exchange position improved to -4.9 billion dirhams (MMDH) on weekly average between August 5 and 11, against -5.4 billion dirhams a week earlier, according to Attijari Global Research.
This development is supported by record receipts from Moroccans residing abroad (MRE) in the first half of this year, explains AGR in its “Weekly Mad Insights-Currencies” note for the week of August 08 to 12, 2022.
During the same week, the dirham (MAD) appreciated against the US dollar (USD) thanks to a basket effect of -0.35%, AGR reported, noting that despite a penalizing market effect for the national currency , the USD/MAD pair fell 0.12% to 10.2943.
Furthermore, AGR stresses that the liquidity conditions on the interbank foreign exchange market seem unfavourable. Liquidity spreads remain positive this week at 0.52% up 23 basis points from the previous week.
In addition, the subsidiary of Attijariwafa Bank notes that inflationary pressures continue to weigh on growth prospects in Europe. These fears are reviving expectations of a recession scenario in and fueling volatility in the currency markets, particularly the EUR/USD pair.
To this end, it recommends that dollar exporters adopt very short-term hedging strategies.