Moroccan Banks Face Growing Liquidity Crisis Amid Pandemic

Since May, banks have been suffering from a liquidity deficit, reports Les Inspirations Eco. Data from Bank Al-Maghrib (BAM) indicate that the widening of the liquidity deficit went from 96.5 billion dirhams in May to 100.4 billion dirhams in June, before settling at 102.7 billion dirhams in July. These widening represent respective liquidity contributions of 1.4 billion dirhams, 4.9 billion dirhams and 9.1 billion dirhams from BAM for these three months, it is specified.

According to experts, this progression is explained among other things by the increase in currency in circulation on the occasion of Eid Al-Adha. Economist Mehdi Fakir, for his part, is convinced that the widening of the liquidity deficit of the banking system should continue in 2020 and even beyond this deadline, at a more accentuated pace. To reverse this trend, he indicates the course of action. "They (the banks) will only deal with files that benefit from the state guarantee. They will also fully engage in debt collection to make up for their liquidity deficit," suggests Mr. Fakir.

For now, the banks are benefiting from BAM’s support to deal with this unsightly situation.