Moroccan dirham strengthens against dollar as market stability returns

The Moroccan dirham has appreciated by 2.3% against the US dollar while experiencing a slight decline of 0.6% against the euro, as reported by Bank Al-Maghrib (BAM). This currency fluctuation indicates a brief period of strength for Morocco's national currency amidst ongoing financial adjustments.

In a notable development, BAM did not conduct any foreign exchange auctions during this evaluation period, as highlighted in its weekly bulletin of key indicators.

As of April 10, Morocco's official reserve assets stood at MAD 384.8 billion (approximately $38.5 billion). Although this represents a 2.1% decrease from the previous week, the reserves have seen a year-on-year increase of 7.3%.

To support the banking system, BAM injected an average of MAD 131 billion ($13.1 billion) daily. This assistance comprised MAD 49.3 billion in seven-day advances, MAD 49.8 billion (about $4.93 billion) through longer-term repurchase agreements, and MAD 32 billion ($3.2 billion) in guaranteed loans.

On the interbank market, daily transaction volumes reached MAD 3 billion ($300 million), with the average interest rate maintaining a stable 2.25%. In its April 16 tender operation, BAM supplied MAD 49 billion ($4.9 billion) in seven-day liquidity to the market.

The Casablanca Stock Exchange has also shown resilience, with the MASI index surging by 6.8%, recovering from a significant 9.3% decline the previous week. Since the start of the year, the index has risen by 15.9%.

Most sectors witnessed positive movement, with banks increasing by 3.7%, the construction and building materials sector climbing 6.6%, and telecommunications rising by 7.5%. The most substantial gains were seen in transport services and electricity, which recorded increases of 10.9% and 18.4%, respectively. The forestry and paper sector, however, experienced a minor setback, dipping by 0.2%.

In summary, the Moroccan dirham has gained traction against the dollar, and while official reserves have slightly decreased, they remain robust. The stock market has rebounded following a challenging week, with most sectors enjoying upward momentum, despite a reduction in overall trading activity.