Moroccan Dirham Expected to Strengthen Against US Dollar in Coming Months

In its "Weekly Mad Insights - Currencies" note for the period from September 12 to 16, AGR indicates that "due to liquidity conditions in the foreign exchange market, we have revised our USD/MAD forecasts downwards at 1 and 2 month horizons. Compared to the spot rate, the MAD should appreciate against the dollar at 1, 2 and 3 month horizons."

According to AGR analysts, import and export flows should rebalance in the short term. This analysis takes into account the end of the summer season. It was also made in anticipation of the end of dividend repatriations abroad.

As for the target levels of the USD/MAD parity, they come out at 10.75, 10.75 and 10.70 at 1, 2 and 3 month horizons against a spot rate of 10.81.

According to AGR, the dirham should appreciate against the euro at the 1 month, 2 month and 3 month horizons. "The target levels of the EUR/MAD parity come out at 10.45, 10.45 and 10.40 at 1, 2 and 3 month horizons against a spot rate of 10.79," it is specified.