Moroccan Dirham Set to Strengthen Against Euro, Weaken vs Dollar: Analysts Forecast

In its "Weekly Mad Insights - Currencies" note for the period from November 14 to 18, AGR indicates that due to "liquidity conditions in the foreign exchange market, we have revised our USD/MAD forecasts downwards at horizons 1, 2 and 3 months". AGR will specify that the dirham should depreciate slightly against the dollar at the 3-month horizon. According to AGR analysts, this scenario takes into account an expected decline in import flows due to the expected decline in international demand.

As for the target levels of the USD/MAD parity, they come out at 11.04, 10.98 and 10.93 at horizons 1, 2 and 3 months against a spot rate of 10.72. 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 10.87, 10.82 and 10.77 at horizons 1, 2 and 3 months against a spot rate of 11.09," it is specified.